Agenda item

Hackney Carriage Fare Review 2024

Meeting of Cabinet, Tuesday, 20th February 2024 6.00 p.m. (Item 73.)

(Cabinet Member with Special Responsibility Councillor Wood)

Report of the Licensing Manager

Minutes:

(Cabinet Member with Special Responsibility Councillor Wood)

Cabinet received a report from the Licensing Manager that sought Cabinet approval of the recommendation from Licensing Committee to maintain the current table of fares for Hackney Carriages operating in the district for the coming year.

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 implemented in April 2023.	Option 2: Apply retail price index (RPI) across the tariff. (6.1%)	Option 3: Deregulate fare setting	Option 4: In addition to option 1 or 2, apply an additional charge for fares taken after a set time. Eg 20.00, 21.00 or 22.00	Option 5: Maintain flagfall, amend rolling rate to 25p per 176 yards (1/10th mile).
Advantages	Public are aware of expected fares when hiring a hackney carriage.	Drivers income is increased in line with rising cost of living. 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.	It would encourage more drivers to work in the evening when there are limited vehicles available. Regular daytime users of licensed vehicles will not be affected by the introduction of the charge. The council is responding to local pubwatch and business improvement district requests for assistance with the recruitment and availability of licensed vehicles in the nighttime economy.	This would work out as a 5.3% increase for a 2-mile journey. Allows for an increase representative of the approved methodology.
Dis- advantages	The current table of fares may not represent current cost of living.	A further increase in quick succession is laborious procedurally and in terms of administration, as one update takes effect, it is time to calculate further change. Annual cost of calibration to drivers.	Licensing Authority has no control on charges passed to the public. May create confusion as fares could vary across the trade.	It may have a negative reaction, resulting in the public using licensed vehicles less.	Results in fares amounting to 5p. (always been in multiples of 10p)
Risks	Not consistently applying the methodology approved by Cabinet. 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.	The public do not utilise the services of hackney carriages in the nighttime economy and take risks to get home. i.e. walking.	Amending yardage will increase rolling rate in a shorter distance, it may cause confusion for regular service users.

Members of Licensing Committee voted unanimously in maintaining the current table of fares for 2024/25 and have referred their recommendation to Cabinet for approval.

In 2022 Cabinet agreed a methodology for fare reviews in relation to hackney carriages operating in the district. The review had been undertaken, and options presented to Licensing Committee. Members of the Licensing Committee considered the views of the local licensed trade on those options prior to making their recommendations to Cabinet. The majority of the local licensed trade who responded to the consultation were satisfied with the current table of fares and did not wish to see an increase in fares in the coming year and the Licensing Committee felt the lack of appetite for an increase was enough to make that recommendation to the Council’s Cabinet for decision.

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

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1) That Cabinet accept the recommendations of the Council’s Licensing Committee and approve that the table of fares will be maintained for 2024/25.

(2) That approval be given to the Licensing Manager to advertise the table of fares as required by Section 65 of the Local Government (Miscellaneous Provisions) Act 1976.

Officer responsible for effecting the decision:

Chief Officer Governance

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: