London taxi fares to increase by 5.5% to stop black cab drivers quitting

Taxi fares in the capital are set to increase by 5.5% in a bid to stop black cab drivers quitting the profession.

This is the first annual increase in more than two years after the annual rise was abandoned last year and in 2020 due to the pandemic.

The new black cab fares are set to come into effect from April 30, with the minimum fare increasing from £3.20 to £3.80.

Fares to Heathrow Airport will rise as well.

Changes will apply to journeys made between 05:00 and 22:00, although overnight rates will be frozen.

It follows a 4.8% average increase in Tube and bus fares and 3.8% rise in the cost of National Rail travel earlier this month.

Uber prices are also expected to increase by 20% after the company lost a court battle which will force them to start charging VAT on rides.

Graham Robinson, TfL’s General Manager for Taxi and Private Hire, said: “We are making changes to taxi fares, which have not been reviewed since 2019 due to the pandemic.

“The taxi industry has faced significant financial pressures throughout the pandemic and drivers have also invested heavily in greener, more modern vehicles, with more than a third of the black cab fleet zero emission capable.

“The trade is also facing inflationary increases that need to be factored into fares.

“We have sought a wide range of views through public consultation to inform our decision for an increase to help cover these costs.”