Powys Proposes 8% Taxi License Fee Hike Impacting Private Hire, Hackney Drivers, and Operators

Taxi License Fees Set to Rise in Powys

Taxi license fees in Powys are scheduled to increase by eight per cent starting 1 April next year. The proposal, which was discussed at a Powys County Council meeting on Thursday, 21 November, aims to address the growing costs associated with processing and administering the taxi licensing regime.

The increase is part of a broader effort by the council’s Planning, Taxi Licensing, and Right of Way committee to maintain a sustainable licensing system. Councillors received a report detailing the reasons behind the proposed rise and how the fees are calculated. According to the report, the fee adjustment will bring in an additional £6,300 for the taxi licensing team in 2025/2026.

Cost Recovery, Not Profit

Licensing team manager Natalie Jones clarified that the proposed fee hike is not intended for profit generation but to cover the actual costs of running the taxi licensing process. She explained that the varying costs between local authorities result from differences in staffing levels, pay rates, and the number of licenses processed. Jones also highlighted that supplier costs and materials contribute to these discrepancies across Wales.

“We are simply seeking cost recovery,” Jones said. “If there are discrepancies, we incorporate them into the fees for the following year to ensure fairness.” This statement underscored the council’s aim to balance the financial burden on taxi operators while maintaining an efficient system.

Consultation Period for Taxi Drivers

The proposed fee increase is subject to a month-long consultation with local taxi drivers. The consultation process is part of the council’s commitment to involving stakeholders in decision-making. After the consultation period ends, the feedback will be reviewed, and a final report will be presented to the committee before the decision is officially implemented.

Councillor Jones voiced support for the fee rise, noting the importance of a balanced approach that ensures taxi operators are not unfairly burdened. The committee voted unanimously to proceed with the consultation phase, allowing the public to voice their concerns.

Private Hire and Taxi Licensing Fees

The increase in taxi licensing fees will apply across different categories of taxi and private hire services. Currently, the fee structure for private hire and hackney carriage vehicles includes several charges for both operators and drivers.

Private hire operator licenses cost £355 for a five-year application, with an additional £20.50 for a DBS check if the operator is not a licensed driver. Drivers renewing their licenses pay £284 for a three-year license, along with a £40.50 enhanced DBS fee. The charges for joint driver licenses and knowledge test fees are similarly structured.

For vehicles, the annual fee for both private hire and hackney carriage vehicles is £150, with additional charges for plate brackets and door stickers. These fees reflect the ongoing regulatory requirements for ensuring safety and compliance in the sector.

Cross-Border Licensing Implications

The fee hike may also have implications for cross-border private hire services. Drivers operating across county lines must adhere to the licensing conditions set by each local authority, which can result in discrepancies in costs and requirements. Operators who serve multiple areas may need to navigate these variations to ensure compliance with each council's regulations. The council’s new fee structure is expected to streamline some of these cross-border challenges, though it remains to be seen how different authorities will adapt to these changes.

As the consultation progresses, taxi drivers and operators will have an opportunity to raise concerns about the fairness and impact of the proposed increases. The ongoing dialogue between the council and the private hire sector will be crucial in determining how these fees affect the local taxi trade moving forward.