Members of Highland Council’s licensing committee have agreed to an early review of taxi fares.
The request came from dozens of taxi firms operating across Highland, who say they’re struggling with increased costs and driver shortages.
Highland Council has powers to set the maximum fare levels, and must review these every 18 months at least.
However, taxi firms asked the council to undertake an emergency review. The licensing committee yesterday voted to start that now.
Ninety-three operators across the Highlands – but predominantly in Inverness – signed a joint letter to the council. Of these, 95% support increasing fares, with the vast majority wanting a 15-20% rise.
Councillors show support
The debate at committee mostly showed support for the taxi operators. Inverness councillor Duncan Macpherson said taxis are very important to the Highland economy.
“We should do them a good service by offering to expedite the review as quickly as we can,” he said.
Under the previous timeline, Highland Council would have gone to statutory consultation in September/October 2022, and set new fares by April 2023.
Instead, members agreed to begin the consultation now and publish a revised scale in February 2023.
However, this is only a two-month jump, and the committee said it needs to “manage industry expectations” about the impact this would have.
No sign of prices slowing down
At the heart of the taxi firms’ request is the sharp increases in fuel. Figures quoted by the council from the Office of National Statistics reveal that petrol and diesel have increased by 33% and 41% respectively.
And since February 2021, the price of a second hand car is up 30%.
The taxi industry is also facing rising demand, but a shortage of drivers.
Councillor Drew Miller brought the motion in favour of expediting the review. “There’s no sign of the petrol or diesel price increases slowing down so we must help as much as possible,” he said.
However, councillor Karl Rosie raised concern about the workload being placed on the council. He tabled an amendment to stick with the original April 2023 review date.
Mr Miller’s motion won the vote, and Highland Council will launch an online consultation into taxi fares this summer.
The licensing committee will agree a draft schedule of fares in September, and advertise these on the council’s website and the P&J.
Highland Council expects to agree the final tariff in November, and these will take effect from February 2023.
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