London Private Hire companies stop trading after hike in fees

New figures have shown almost fifty Private Hire Operators have closed their doors since the 5000% rise in license fee’s by Transport for London was introduced.

The Chauffeur reports that the Licensed Private Hire Car Association (LPHCA), which campaigned to get Private Hire Vehicles (minicabs and chauffeurs) in London licensed, will challenge Transport for Londonin the High Court on 6th February.

It has brought about judicial review proceedings for what it sees as punitive and unfair increases in the cost of Licensed Operator Fees.

A freedom of information request to TfL has shown that in September 2017, when the new fees were approved, there were 2,445 PHV Operators licensed. By 3 December 2017, there were just 2,399. TfL has stated that it needs to increase costs to meet operator licensing, compliance and enforcement costs.

The Chauffeur quotes Steve Wright Chair of the LPHCA as saying, “I have spent all my working life seeking to improve standards and safety in London. TfL’s own figures show there are fantastic levels of compliance because Operators in London have been regulated for over 15 years. We are concerned that monies raised by these increases will not be used for Operator compliance but be used elsewhere by TfL.

“We are taking legal action more in sorrow than in anger. What we hope is that the High Court will rule in our favour and that TfL will engage with us and other key trade bodies to discuss fees that are realistic, affordable and proportionate to the cost of running its compliance and enforcement function.”