Decision details

Hackney Carriage Fare Review 2019

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes


(Cabinet Member with Special Responsibility Councillor Brookes)


Cabinet received a report from the Director for Communities and the Environment to consider introducing a new fare tariff in relation to licensed hackney carriages operating in the Lancaster district.  At a meeting on 29 August 2019 the Licensing Committee had, in its capacity as an advisory committee recommended Cabinet’s approval of the new tariffs.


The options, options analysis, including risk assessment and officer preferred option, were set out in a report to the Licensing Committee, appended to the agenda, as follows:



Option 1: Maintain current table of fares approved in 2017.

Option 2: Apply retail price index (RPI) to current flag fall.

Option 3: Apply 20p increase to flag fall


Public are aware of expected fares when hiring a hackney carriage.

This seems to be a general approach across County and Country, although not a common approach to all.

Representatives of the trade supported this approach when discussed at the Taxi Working Group




The current table of fares has not been reviewed since 2017.

Allows for a minimal increase only (2.1%).

The increase is not supported by an agreed or common methodology that reflects the cost of owning and operating a hackney carriage in the District.


Drivers may decide to leave the trade, if they decide that the profit is marginal.

Drivers may decide leave the trade, if they decide that the profit is marginal.

Decrease in business for hackney carriages due to fare adjustments.


The Officer preferred option is Option 3 to apply an increase of 20p to the initial flag fall.  Applying the tariff increase would seem appropriate so as to help ensure that hackney carriage proprietors receive a reasonable increase in fare income.  The increase reflects necessary and proportionate adjustments, given that there were no increases in fares last year (2018) and the increase in the previous year was marginal, based on the annual RPI.  Any concerns from members of the public will be addressed through the consultation process by placing a notice in the local press proposing the revised tariff.  An amended table of fares, that reflected option 3, was appended to the agenda as Appendix 3.


It was reported that there was an error in Appendix 3 and that the tariff 3 should read £5.20 and not £5.00 and this would be amended prior to going out to consultation.



Councillor Brookes proposed, seconded by Councillor Parr:-


“That the recommendations, as set out in the report subject to the amendment to tariff 3 in Appendix 3, as set out above, be approved.”



Councillors then voted:-


Resolved unanimously:


(1)          That the new table of fares as recommended by Licensing Committee on 29 August 2019 be approved subject to a revision to Tariff 3, Appendix 3 to read £5.20  and not £5.00.


(2)          That the Licensing Manager be authorised to advertise the new table of fares as required by legislation.



Officer responsible for effecting the decision:


Corporate Director for Communities and the Environment


Reasons for making the decision:


The setting of fares is an Executive function as it is not one that is listed in the Local Authorities (Function and Responsibilities) (England) Regulations 2000 and therefore falls to the Cabinet to make the final decision whether to approve the increase in charges recommended by Licensing Committee on 29 August 2019.  The decision enables the proposed fares to be published in the local paper and allow for any objections to be considered prior to coming into effect.


Publication date: 07/10/2019

Date of decision: 01/10/2019

Decided at meeting: 01/10/2019 - Cabinet

Effective from: 15/10/2019

Accompanying Documents: