2.7 per cent Taxi fare increase for 2008 to meet higher black cab running costs

07 February 2008
"These new fares take into account the increased costs over the year of running a black cab"

These new fares take into account the increased costs over the year of running a black cab

The new fares will come into effect on Saturday 5 April 2008. 

Fares are calculated by TfL using an agreed cost index based on national average earnings and taxi operating costs. 

Operating costs have gone up by 5.7 per cent this year, with a significant increase of 13.3 percent in the cost of diesel fuel.

The increase in line with the cost index is 4.7 per cent, but the net increase of 2.7 per cent for passengers is the result of removing the 20p environmental surcharge on every journey, introduced in 2005. 

Emissions strategy

The purpose of that charge was to help taxi owners meet the requirements of the Mayor's taxi emissions strategy. 

After three full years it has served its purpose. 

All taxis in London should meet Euro III standards by the summer.

Ed Thompson, Taxi and Private Hire Director at TfL's Public Carriage Office, said: "These new fares take into account the increased costs over the year of running a black cab. 

Top quality service

"They protect taxi drivers' income while still providing value for money for passengers, who enjoy a top quality service in London."

The TfL Board approved the new taxi fares on Wednesday 6 February, following consultation by the Public Carriage Office with the taxi trade and others, including London TravelWatch.

The Board also approved increases of 50p to some fixed fares for taxi sharing schemes. 

These will come into effect on Saturday 5 April 2008. 


Notes to Editors

The Public Carriage Office, as part of Transport for London, is responsible for licensing and regulating London's taxi and private hire services
  • Taxi fares are worked out according to one of three tariffs. These are as follows:
    • Tariff 1 - Monday to Friday, between 6am and 8pm
    • Tariff 2 - Monday to Friday, between 8pm and 10pm, and weekends between 6am and 10pm
    • Tariff 3 - nightly between 10pm and 6am, and on public holidays
  • Taxi fares in the evening and late at night were increased in 2001 to encourage more drivers to work at these times, improving the safe travel options available to support London's late night economy
  • Average fares for 2007/08 and 2008/09 (including the current 20p environmental charge in 2007/08 fares):
       Current average1  New average2  Increase (£)  Increase (%)
     Tariff 1  £9.59  £9.82  £0.24  2.5
     Tariff 2  £11.08  £11.39  £0.31  2.8
     Tariff 3  £12.97  £13.37  £0.40  3.1
     All Week  £10.57  £10.85  £0.29  2.7
  • The Retail Price Inflation level is 4.3 per cent
  • The 4.7 per cent increase in taxi tariffs is in line with the increase in the cost index in use since 1981.  The index, agreed with the taxi trade, combines changes in operating costs with national earnings to produce a change in average fares
  • There are a number of fixed fare taxi sharing arrangements operating in London.  There will be an increase of 50p in the fixed fare for shared trips from Wimbledon or Southfields stations to the Wimbledon tennis tournament; and a 50p increase in a number of fares from Paddington station and from Buckingham Palace.  In many cases, these increases broadly reflect the general increase in fares since the fixed fares were last changed
  • Fixed fares have been set to ensure both the driver and passengers benefit from the scheme - the driver should receive more than the metered fare, while each passenger should pay less than they would pay for an exclusive journey.  Passengers also benefit from reduced waiting time for taxis, and there is a general community benefit from more efficient use of vehicles, reducing congestion, noise and emissions