Jacobs Report and the High Cost of ZEC Taxis

Meeting: 
MQT on 2019-02-25
Session date: 
February 25, 2019
Reference: 
2019/4112
Question By: 
David Kurten
Organisation: 
Brexit Alliance Group
Asked Of: 
The Mayor

Question

The Jacobs Report stated that: "Virtually all taxi drivers are self-employed and would therefore have to bear the cost of a new vehicle themselves while at the same time seeing the value of their present taxi diminishing. With a new zero emission vehicle costing approximately £40,000, and a high proportion of drivers over the age of 50, there is a risk, even with mitigation, of an exit of drivers and vehicles from the market. Taxi drivers with older vehicles can: invest in new vehicles, including second hand that meet the age limit, but availability of the latter is expected to be virtually nil; or withdraw from the market." Given that the new ZEC Taxi costs £25,000 more than it was expected to be and only 1,000 of the new Cabs have been sold out of a target of 9,000 in 3 years, will you find funding for this £25,000 shortfall for 9,000 taxi drivers, or is it your intention to price taxi drivers out of the market, as was warned by Jacobs in October 2014?”

Answers

Answer for Jacobs Report and the High Cost of ZEC Taxis
Jacobs Report and the High Cost of ZEC Taxis

Jacobs Report and the High Cost of ZEC Taxis

Answered By: 
The Mayor

London’s toxic air is a shameful health crisis. It causes thousands of premature deaths and increases the risk of illnesses like dementia and asthma. It also damages the lung development of our children.

I have a range of ambitious policies to tackle this crisis head on, including the world’s first Ultra Low Emission Zone. Air pollution costs London’s economy up to £3.7 billion a year so we need to take bold action. It’s right that taxi owners play their part too to reduce taxi NOx emissions by 65 per cent (on 2013 levels) which is also part of the Government’s Air Quality Plan. I am helping with the transition.

Black cabs are exempt from the ULEZ charge in recognition of their unique vehicle licensing requirements. In addition, TfL is helping the trade to act by providing funding to remove older, more polluting diesel taxis. This includes a £42 million delicensing scheme, with payments of up to £10,000, and contributions to a government grant of £7,500 to reduce the cost of zero emission capable (ZEC) taxis. Over 1,400 ZEC taxis are now on the road, benefiting drivers with improved comfort and fuel savings but most importantly, improving their health and the health of Londoners.