New Survey Reveals Opposition to Proposed ‘Taxi Tax’ Ahead of Budget
A significant majority of the British public opposes the introduction of a “taxi tax,” according to a recent survey. Seven in ten respondents believe that implementing a 20 percent VAT increase on taxi fares would be inappropriate, particularly as the country grapples with a rising cost of living, reports BritPanorama.
The proposed levy would disproportionately impact individuals who rely on taxis for essential transport, including shift workers, disabled individuals, and residents in rural areas with limited public transport options. The looming increase comes as a potential financial burden exacerbating existing economic challenges for millions.
Polling data indicates that 71 percent of voters want Chancellor Rachel Reeves to abandon plans for the tax in the upcoming Budget. Additionally, two-thirds of Labour voters express concern that implementing such a tax would suggest that the government is out of touch with the financial realities of ordinary citizens.
Moreover, 64 percent of those surveyed view the ‘taxi tax’ as an undue burden on working individuals, a stance that Labour leaders committed to avoiding prior to the last election.
Following a lengthy legal battle, taxi firms, rather than individual drivers, would face VAT liability, as they hold contracts with drivers, thus making them responsible for the tax.
Stephen Brookes, Disability Transport Policy Adviser at Disability Rights UK, stated, “Many of our members, who often have no other viable transport options, are already grappling with soaring living costs, while personal independence payments are cut. A move that sidelines disabled people, raising money on the backs of the most vulnerable, is something we condemn. For many disabled people, private hire vehicles are not a luxury; they are essential.”
Andrew Goodacre, Chief Executive of the British Independent Retailers Association, emphasized, “It’s an unfair tax on working people – often earning minimum wage – who help keep the country going, and damaging to the high streets that rely on them.”
A spokesperson for the Stop the Taxi Tax campaign criticized the proposal, declaring, “The Taxi Tax not only breaks the promise Labour made to the public not to raise VAT but will completely backfire – raising prices, fuelling inflation, risking jobs and damaging growth, while failing to raise the revenue to fill the fiscal black hole. The Taxi Tax will make families worse off and harm vulnerable people the most. That’s why the public are dead against it. We urge the Government to listen and to keep its promise.”
A Treasury spokesperson responded, stating, “We take this issue very seriously and recognise its complexity. We are reviewing feedback from our recent consultation and will publish our detailed response shortly.”
