Agenda item

Hackney Carriage Fare Review 2023

(Cabinet Member with Special Responsibility Councillor Brookes)

 

Report of the Licensing Manager

Minutes:

(Cabinet Member with Special Responsibility Councillor Brookes)

 

Cabinet received a report from the Licensing Manager to consider consultation responses as required by s65 Local Government Miscellaneous Provisions act 1976 and set a new Hackney Carriage fare tariff; including determination of the date any such change would take effect.  The Chair of the Licensing Committee, Councillor Hartley, was in attendance to listen to the discussion.

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

 

Option 1: Maintain current table of fares approved in April 2022.

Option 2: Apply retail price index (RPI) across the tariff. (14%) Rounding down to the nearest 5p.

Option 3: Deregulate fare setting.

Option 4: Increase flag[1]fall by 7% Increase rolling rate by 10% by reducing the increment from176 yds to160 yds.

Advantages

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

Drivers income is increased in line with rising cost of living.

 

 This was identified as the preferred methodology to the trade through consultation.

 

The licensed profession may be perceived as a career option for local people.

Allows licensed trade to calculate their own fares, they may be best placed to calculate costs

The uplift is consistently applied across the tariff, not disadvantaging service user groups. e.g, those on long/short journeys.

Disadvantages

The current table of fares may not represent current cost of living.

Second increase in quick succession may lead to a decrease in public use.

Licensing Authority has no control on charges passed to the public.

 

May create confusion as fares could vary across the trade.

The changes across the tariff and amending incremental charges may cause public confusion, leading to an increase in complaints.

Risks

Not consistently applying the methodology approved by Cabinet and supported by the trade.

 

Drivers may decide to leave the trade, fares do not meet the demands of the rising costs of living.

Increase too much for service users. Drivers may see reduced income due to lack of public use.

Lack of public confidence in use of Hackney Carriages due to unknown charges.

 

 Varying charges between proprietors creating confusion.

Not consistently applying the methodology approved by Cabinet and supported by the licensed trade.

 

Fares will increase earlier in journeys; regular users of taxis may feel penalised by the uplift.

 

The Licensing Committee had not considered the consultation responses and therefore made no recommendations to Cabinet.

 

At an earlier meeting of the Council’s Cabinet in February 2023, members approved an updated rate of fares for hackney carriage operating in the  and gave approval to the licensing manager to undertake the statutory consultation. As part of the public consultation 2 responses were received from members of the local licensed trade. Both of which objected to the proposed tariff. Currently there were 878 active hackney carriage and private hire licences in the district. These licence holders have had time to consider the proposals and respond within the consultation period and members were requested to determine what weight to place on the responses received balanced with the number of active licences.

 

Cabinet was requested to consider the options set out above and determine the hackney carriage table of fares for the coming year (2023/24). Cabinet was also required to set the date of implementation. Legislation dictates that any update must take effect (modified or unmodified) within 2 months of the original date. Officers would recommend a lead time of 5 working days to allow the trade to be sufficiently updated and the service prepared to manage the transition. Officers propose the new table of fares be implemented from Midday on Wednesday 19th April 2023.

 

Councillor Brookes proposed, seconded by Councillor Hamilton-Cox:-

 

“That Option 4, (as agreed by Cabinet on 7 February 2023 (Minute 69 refers) be approved without modification with an implementation date of 19th April  2023.”

 

Councillors then voted:-

 

Resolved unanimously:

 

That Option 4, (as agreed by Cabinet on 7 February 2023 (Minute 69 refers) be approved without modification with an implementation date of 19th April  2023.

 

Officers responsible for effecting the decision:

 

Licensing Manager

 

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 decision.  Lancaster City Council set the fares for Hackney Carriages operating in the district, in determining the charges for time/distance it must consider the impact on setting fares too low/too high on both the licensed trade and public who use Hackney Carriages, whilst balancing the rising cost of living and building a sustainable trade; one capable of earning a fair salary.

 

 

Supporting documents: