Cap vehicle numbers to support taxi and private hire industry

The Transport for London (TfL) Taxi and Private Hire Action Plan has been described as a “missed opportunity”,¹ with a lack of meaningful engagement with drivers and the industry contributing to its flaws.

A London Assembly Transport Committee investigation into the plan has found more action is needed to support drivers and the industry.

In letters to the government and TfL published today, the Committee calls for a range of measures aimed at improving drivers’ financial security, working conditions, and the safety of drivers and passengers alike.

The Committee is calling for measures including a cap on the number of private hire vehicles in the capital and additional funding to help drivers purchase electric vehicles.

Recommendations in the letters include:

• The Government should legislate by the end of the 2025-26 Parliamentary session to grant TfL the power to establish a cap on the number of private hire vehicles licensed for use in London and stop cross-border hiring.
• By the end of 2025, TfL should make it a condition of licensing that operators do not use technologies that require drivers to read messages or touch their phones whilst they are driving.
• The Government should extend the plug-in taxi grant beyond April 2026 and reinstate the original rate of £7,500 per vehicle.
• The Government should make taxis and wheelchair accessible private hire vehicles exempt from VAT by the end of 2025.
• TfL should bring forward proposals for new financial support mechanisms for the taxi trade, beyond the plug-in taxi grant and VAT exemption. This should include exploring using the Mayor’s Green Finance Fund.

Chair of the London Assembly Transport Committee, Elly Baker AM, said:

“The Committee is concerned about the future of the taxi and private hire industry in London, and TfL’s lack of serious engagement with drivers, their representatives, and this Committee only adds to our fears.

“TfL says that it wants to make taxi and private hire driving an attractive career for current and future drivers, but the evidence we have heard says the Plan is failing on those grounds.

“It is time that TfL gets serious about protecting this industry, drivers, and all the Londoners who rely on taxis and minicabs to get around – starting with a cap on private hire vehicle numbers.

“Our recommendations can make a big impact to the success of this Plan, but TfL needs to start listening to drivers to sustain progress in the years to come.”