Proposed Taxi Fare Adjustments for Fareham: Challenges and Impacts

The Case for Adjusting Taxi Tariffs in Fareham: Challenges, Proposals, and Impacts

The local taxi trade in Fareham faces mounting challenges due to shifting economic conditions. Inflation has recently dropped to 2.6%, coupled with a significant 2.4% year-on-year reduction in transport costs—the largest decrease since 2015.

Despite these positive indicators, the broader economic context presents a starkly different reality. Rising costs of essentials such as food, housing, and vehicle maintenance have placed immense pressure on households and businesses, including taxi operators.

For Fareham’s taxi industry, the squeeze on profits has resulted in fewer new license applications, further exacerbated by drivers leaving the trade for better-paying opportunities and a wave of retirements.

Currently, the borough licenses 115 Hackney Carriage vehicles and employs 93 Hackney Carriage drivers, supplemented by 49 dual-license holders. However, driver shortages have sparked growing concerns over service reliability, particularly for vulnerable passengers who depend on accessible transport.

The Current Tariff and Its Regional Context

Fareham’s existing taxi tariff starts at £3.00, covering the pull-off and the first 180 metres of a journey. For every additional 170 metres travelled, passengers are charged 20p.

This means a typical five-kilometre trip costs approximately £8.60. While the tariff is broadly comparable to neighboring areas like Gosport, Eastleigh, and Havant, regional variations in living costs and operational expenses create challenges for direct comparisons.

The Fareham Hackney Carriage Association argues that current rates fail to adequately reflect the rising costs of fuel, insurance, and vehicle maintenance.

Moreover, they highlight that competitive pricing in nearby areas can lead to Fareham-based drivers losing out to counterparts with more sustainable fare structures.

Proposals for Adjusting Fares

The Association has proposed a 10% fare increase for a typical two-mile trip, coupled with a rise in the soilage charge. This adjustment aims to address the escalating costs faced by drivers while ensuring the profession remains viable for new entrants. A public consultation conducted by the Licensing Team between 20 September and 11 October 2024 received a 17% response rate from licensed vehicle proprietors. Among respondents, 85% supported the proposed changes, emphasizing the need for financial sustainability in the trade.

However, 15% of respondents argued against the increase, citing recent reductions in inflation and transport costs as reasons to maintain the status quo. This minority position highlights concerns over passenger affordability and the risk of pricing out regular customers.

Impact on Service Quality and Accessibility

One of the most significant implications of the fare adjustment proposal is its potential impact on service reliability. The current shortage of drivers has already affected the availability of Hackney Carriage services, particularly during peak hours and for vulnerable passengers requiring accessible transport.

Advocates for the fare increase argue that higher earnings could attract new drivers to the trade, helping to mitigate the existing shortage and ensure consistent service levels.

Without such measures, the profession risks becoming increasingly unsustainable, further compounding the challenges faced by Fareham’s taxi users.

Steps in the Decision-Making Process

The Licensing and Regulatory Affairs Committee is tasked with reviewing the consultation results and the Fareham Hackney Carriage Association’s proposal.

If the committee recommends a tariff adjustment, the Council’s Executive will consider the proposal before initiating a statutory public consultation.

This process provides an opportunity for residents and stakeholders to offer feedback, ensuring that any final decision balances the needs of passengers and drivers alike.

Current Tariff Details