INDUSTRY EXPERT
missioner, board or similar made up from the industry to really get to grips with the chal- lenges and resolve them? If not that, then why are the ‘representative’ organisations not attracting members to a point where everyone bar a few sceptics actively takes part? Why can’t the representative organisa- tions generate the income levels needed to run effective organisations that can fund re- search, public affairs professionals and people capable of putting together proposals than can become government policy? Per- haps we need a crisis to shift the needle from shoulder shrugging to meaningful represen-
as well as learning from the past. But as an industry the majority have no view or if they have, they don’t find the time, energy or inclination to do anything about it.
The analysis shows that a small minority belong to a representative organisation through enthusiasm, guilt or the social benefits which leaves policy makers wondering however well points are made, whether when policymakers implement something, the major- ity of the industry will go nuts. Politicians and policy- makers were badly bitten by the Deregulation Act which was welcomed by the industry’s leaders and has been derided ever since by not only the leaders but about half of the industry. The other half presumably have benefited and are keeping quiet……until it changes again when it will be their turn to begin shouting loudly.
As a £12-£14bn industry we should be better than this. No one expects complete agreement on everything, but there must be certain baselines that the majority of the industry could coalesce around that would pro- vide a healthier environment in which the industry can grow and prosper.
Surely, we should be looking forward to what the world and our part of it looks like in 10, 20, 30 years and developing policy that wants to keep us relevant? Unfortunately, we don’t have the mechanisms and structures in this industry for that and hence we spend the time between legislative change and multiple regulatory alteration trying to convince policymakers to reverse or change the changes that we exercised little or no influence on.
Starting from a radical perspective why don’t we seek self-determination? Broad legislation enabling a com-
PHTM NOVEMBER 2025
tation? Or maybe not, as if the last ten years hasn’t been a crisis and half I don’t know what a crisis needs to look like to qualify for the title and encourage a reaction!
Will a 20% increase in fares be good for the industry?
This summer’s crop of consultations did not address the elephant in the room…
..VAT. Rumours abound of the chancellor seizing the opportunity to add 20% to all taxi and PH fares as a useful fillip generating a reputed £2.5bn a year. Comments from operators such as ‘well as long as everyone has to charge it, I sup- pose it’s okay’ make my blood run cold.
We have been in a downturn in this industry for the longest period that I can remember. Shortly after the fu- rore in late 2021/early 2022 concerning driver shortages and overwhelming demand, we have been in a slow- down offset to some extent by an inflationary environ- ment where we have been able to gently increase fares so that most companies’ accounts look unaffected.
Well that cosy window dressing approach to a quite serious problem is going to be severely stressed if fares go up 20%, none of which is going into anyone’s ac- counts, it’s just going straight to HMRC, and watch what happens to volumes. This won’t be a pretty picture if the worse case scenario materialises. What will the industry do about it? Well in its time-honoured tradition the industry leaves it to a few underfunded and overstretched representative organisations and one or two larger operators to apply what pressure they can. The simplistic estimate of £2.5bn income to the Treasury is mythical the impact of a 20% hike on this industry will be anything but.
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