Decision details

To review the hackney carriage tariff rates for time and distance in the Bath and North East Somerset area

The Cabinet Member agrees:

(a) An increase of 3% on the current fares; and

(b) To introduce a charge of 10%, to a maximum of £1, on top of the fare for the use of a credit or debit card

In determining the proposed increase in the tariff rate the percentage increase in the cost of owning a vehicle and the percentage increase of wages, provided by the Office for National Statistics, since the last increase have been used.

The fact that the tariff rate has not been increased since 2011 was also considered.

A meeting was held with representatives from the hackney carriage trade within Bath and North East Somerset and, following discussions, it was decided to propose an increase of 3% on the existing tariff rate and to introduce a 20 pence surcharge to the transaction for the use of debit or credit cards.  This proposal was then put to all the hackney carriage proprietors for their comment and also advertised in two local papers as a public notice. 

Following the consultation, the proposed introduction of a surcharge for the use of a debit or credit card was reviewed.  The fact that the driver has to pay the company who supply the card readers a surcharge or monthly rental has been taken into account and the surcharge allowed by other councils has also been considered.  On examining the information available the proposed amount of 20 pence surcharge to the transaction was considered insufficient to cover the cost to the driver of processing the charge and it was decided that a surcharge of 10% up to a maximum of £1 would be more appropriate and would better cover the cost to the driver and would not be too expensive to put the passenger off from paying by this method.

The Council are keen for passengers to start using debit and credit cards as an alternative means of payment as they are a safer and more convenient means of payment than cash.

The option of no increase in the tariff rate was considered but rejected as the tariff had not been increased since 2011 and the cost of running a vehicle and wages had gone up since that time. 

The option of putting a 12.5% surcharge on the credit/debit card transaction was considered, as this rate is charged in some other authorities, but rejected as this was felt that it would deter people from using their bank card as a means of payment and could also lead to situations where there is conflict between the driver and passenger as the passenger would not understand that there is a high surcharge/rental from the companies who supply the card to taxis.