Scottish Borders Council to Decide on Significant 27% Fare Hike for Taxis

Key Decision Approaches

Scottish Borders Council (SBC) is poised to deliberate a significant fare hike for taxis operating in the region, proposing an increase of nearly 27%.

Senior councillors will decide on this recommendation during their meeting on Tuesday, 3 December. This proposal represents the most substantial adjustment since the last review in August 2019.

Background of Fare Review

The council had originally planned a fare review for 2021, following standard regulatory procedures. However, operational pressures compounded by the Covid-19 pandemic delayed the process.

Earlier this year, SBC initiated a public consultation, recommending a 14.9% increase in fares. The newly proposed 26.7% hike reflects intensified financial strains on drivers operating in the private hire and taxi sectors.

Drivers Face Mounting Costs

A report authored by John Curry, SBC's Director of Infrastructure & Environment, highlights the severe cost pressures faced by private hire operators.

According to Curry, businesses have reported an overall cost increase of approximately 144%, driven by higher insurance premiums, fuel prices, wages, and general operating expenses.

“This report requires members to note the consultation responses in relation to the 14.9 per cent increase and consider whether to apply an increase of 26.7 per cent which is more reflective of the current operating environment,” Curry stated.

Proposed Changes Beyond Fares

In addition to the proposed fare adjustments, SBC is considering an increase in the charge for vehicle valets.

Currently set at £70, the proposed new rate would rise to £100, reflecting inflationary pressures and higher maintenance costs.

Economic Context and Public Reactions

The steep proposed increase has drawn mixed reactions. While drivers argue that these changes are necessary to maintain viable private hire and taxi services amidst rising costs, passengers are concerned about the affordability of local travel.

Reports from other regions also show councils grappling with fare hikes. For example, recent licencing discussions in urban areas like Glasgow and Edinburgh indicate that cross-border demand and inflation are pushing operators to lobby for higher fares, citing similar financial struggles. This highlights a broader trend affecting private hire and taxi operators across Scotland.

Broader Implications

If approved, the fare increase will likely set a precedent for other councils facing similar challenges in the licencing and regulation of private hire vehicles. It underscores the need for regulatory bodies to balance economic viability for drivers with accessibility for passengers.

The Scottish Borders Council decision on 3 December will be pivotal not just for local operators but also for broader discussions about taxi regulation in the region.