Taxi Driver Online

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Wednesday 13 June 2012
Vivienne Nicoll Local government correspondent.

TAXI drivers in Glasgow insist fares must rise by more than 13% to meet the spiraling cost of running their cabs.
But council bosses say the fare hike in the city should be limited to less than 4%.

A union representing 135 taxi operators and 50 individual drivers claims such a low increase will force some firms out of business.


Members of the licensing committee were meeting today to decide on the new cost of taxi fares in the city.

They considered a letter from the Unite union asking for a "significant" rise in order to maintain the level and quality of the service.

It said: "The Glasgow taxi trade has been struggling.

"There are a number of reasons for this – the economic downturn, loss of major contracts, a low tariff and the fuel and VAT increases.

"In almost every aspect, the costs involved with a taxi business have risen and as a result, most operators struggle to make their business viable."

Ken Gillespie of Unite said drivers are having to cope with an increase in running costs, a £3000 rise in the cost of a new taxi, a rise in fuel prices and a jump of up to 40% in insurance costs.

He added: "We have to generate money to keep the trade vibrant by reinvesting in vehicles as well as covering repairs.

"But the 3.6% rise recommended by the council is going to make it hard for taxi drivers to make a living.

"There are drivers who are considering leaving the trade and owners who can't get drivers for their cars.

"Guys are deciding to sell their vehicles and business but nobody wants to buy them.

"The trade will be in a downward trend if the council cannot help us by understanding our plight."

A law firm acting on behalf of Glasgow Taxis has written to councillors asking them to review the formula for setting increases in taxi fares.

vivienne.nicoll@ eveningtimes.co.uk

TAXI fares in Glasgow are to rise by almost 4% despite a plea they should be increased by three times that amount.

However, a detailed review is to be carried out into the precise cost of keeping the city's black cabs on the road.

The city council, which has issued licenses to 1250 taxi operators, is responsible for deciding any fares increase.


Senior officials had suggested the rise this year should be pegged at 3.64% sparking anger from taxi drivers.

They claimed the rise did not cover their increased costs including fuel duty and insurance.

A lawyer acting on behalf of Glasgow Taxis pointed out the formula for assessing the cost of running a taxi was introduced in 2007.

But he said while Glasgow Taxis believe it was right to use the formula when setting previous fare rises, it was now time for it to be reviewed.

A letter sent to the licensing committee said: "The current formula significantly over estimated the level of income generated from the operation of a taxi.

"The figure for driver's income, which is arrived at utilising the current formula, is £17,803, whereas the correct figure is £15,844.

"The 3.64% increase proposed does not reflect the actual increase in the cost of operating a taxi."

The firm called for a complete review of the formula used to decide the level of increase in fares.

Councillors were told: "It is clearly important the council, when seeking to review fares, does so on the basis of an assessment which is as accurate as possible, taking account of all available information."

Drew Connolly of the Unite union, which represents hundreds of taxi drivers, said they were "deeply disappointed" at the council decision.

He added: "There is a league table of taxi fares in the UK and Glasgow has dropped down steadily over the years and is now 301 out of 360 local authorities.

"If you look at cities which are Hackney cab only – which Glasgow is – our fares are the lowest in the UK.

"People like to provide the cheapest taxi fares they can but it has got to the stage Glasgow city taxi drivers are not making a living wage.

"Many drivers, especially those who work Monday to Friday, take home far less than the minimum wage."

Mr Connolly said the union will establish whether members wish to challenge the city council decision.

vivienne.nicoll@eveningtimes.co.uk