Taxi subsidy to continue
York Press!
COUNCIL tax payers in Ryedale are set to have to wait longer than had been planned before they no longer have to subsidise their local authority’s taxi licensing service.
Members of Ryedale District Council have agreed to the principle of keeping the authority’s policy to make the service cost neutral by extending the target date.
The council had aimed that the service would become cost neutral by the end of 2009-10, when council tax payers would have no longer had to pay any of the costs.
The service is currently subsidised, which means that while taxi drivers pay for part of it through licence fees, a short-fall remains. At least some of that short-fall is paid for by the council tax payer.
The council today said its goal of making the service a cost neutral one would still be achieved – but that it did not know when that would be accomplished. The authority said licence fees would have had to have been increased by 40 per cent to achieve the original aim of the policy.
That increase will not happen, although there will be an increase in charges next year.
Proposals for next year’s licensing charges and fees will be put forward next month, as well as a proposed new target date.
A report by Beckie Bennett, street scene finance manager at the council, says: “The risk of setting fees too high could result in drivers not renewing their licence and would potentially increase dissatisfaction with the council’s policy and have a negative impact on the community (however this has not been the effect to date).”
A final decision on whether to retain the policy to make the service cost neutral by extending the target date will be made at a full meeting of the council in January.
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