Decision details

To carry out a review of the hackney carriage tariff rates for time and distance, taking into account the increased costs of providing the service

The Cabinet Member agreed:

(1) There will be an increase of 6.06% on the current fares as determined by the formula used by the Council to calculate fare increases;

(2) There will be an additional passenger rate, for over two passengers, from 30 pence to 50 pence;

(3) There will be an amendment to the waiting time to one minute and increase the increment from 20 pence to 30 pence.

To provide the licensed taxi trade with an increase, which adequately covers the increased cost of providing the service.

In the 1980’s Bath City Council adopted a formula to calculate a “fair” increase in the tariff rate.  With only one or two exceptions this formula has been used every year to calculate the percentage increase.  The adopted formula used for calculating the proposed tariff rate is one-half of the percentage increase in the Average Earnings Index plus one-half of the percentage increase in the cost of motoring.  Using the formula the proposed increase calculates as 6.06%.  The formula is based on the annual increase between the 1st April and the 31st March the following year.  However, since the end of March this year, there has been a sharp rise in the price of fuel which has made a substantial increase in the running costs of Hackney Carriage vehicles.

The increase from 30 pence to 50 pence is to provide a more appropriate fare for when a vehicle is carrying over two people.

The amendment to the time element to one minute is to make it clearer to passengers how much they are paying for waiting time and the increase to 30 pence per minute is to provide a more appropriate return for the drivers.

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