Rachel Reeves is being urged to scrap the 'taxi tax' (Image: Getty)
Labour’s plans to slap full VAT on the cost of every minicab journey have been slammed because of the risk it poses to vulnerable people.
Three leading charities have written to Chancellor Rachel Reeves to scrap the “taxi tax”.
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The groups - who represent survivors of rape and sexual violence, lonely older people, and people with Down’s Syndrome - warn that the planned tax would make “essential travel unaffordable for many and hit vulnerable people in society hardest”.
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The letter, which has been penned by The Down’s Syndrome Association, Re-Engage UK and Survivors’ Trust, says stopping the tax would provide a “lifeline” to all the different groups they represent, many of whom rely on the services just to “live their lives in a safe and dignified way.”
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Last month the Night Time Industries Association warned the proposals, which the government is consulted on, will hike prices for millions of people and hurt a sector already suffering from high costs.
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Three charities have written to Rachel Reeves calling for the proposed 'taxi tax' to be scrapped
Dear Chancellor,
Together we represent the voices of millions of people across the UK, many of whom rely on minicabs and private hire vehicles (PHVs) to safely live their lives.
We are deeply concerned the government is considering applying VAT - a consumer tax - to PHVs and minicabs trips across the country.
This would push fares up by 20%, making essential travel unaffordable for many and hitting vulnerable people in society hardest.
The vulnerable groups and people we represent - the disabled, elderly, long-term sick and people trying to get home safely at night - depend on cabs for essential journeys such as getting to medical appointments, getting home safely from a night out and maintaining their independence.
We are calling on the Government to stop this harmful and unfair new tax and protect those in society who can least afford it. The British public agrees.
Almost four in five say the government should prioritise protecting vulnerable people over introducing the Taxi Tax.
The Down’s Syndrome Association is dedicated to supporting people who have Down’s syndrome to live full and rewarding lives as active members of their communities.
Many people who have Down’s syndrome rely on minicabs and private hire vehicles (PHVs) to travel independently - whether to work, attend education or training, access healthcare, or take part in social and community life.
Accessible, affordable transport is not a luxury - it is a lifeline.
Drastically increasing the cost of these journeys risks cutting people off from the opportunities and support networks they need to thrive.
We urge the government to consider the disproportionate impact of this policy on disabled people and ensure that fair, inclusive transport remains available to all.
Re-Engage UK is committed to combating loneliness and social isolation among older people, ensuring they stay connected to their communities and maintain their independence.
Many older people face mobility challenges or live in isolated areas with limited or irregular public transport. They often rely on minicab and PHV services to visit loved ones, access essential services, attend social gatherings, and attend critical medical appointments.
By significantly increasing the cost of these journeys, you risk making it unaffordable for older people to stay connected, access support, and live with dignity and independence.
The Survivors’ Trust, the UK’s leading organisation for survivors of rape and sexual violence, are worried that these huge price increases would mean that many simply won’t be able to afford to take a minicab home at the end of a night out.
Many people rely on taxis to get home safely, and women in particular can feel unsafe and at risk of sexual assault.
There is an urgent need to reconsider this taxation to protect those at risk of sexual assault, as well as our frontline workers, who also rely on taxis for safe transportation during night shifts.
We urge your government to prioritise safety and ensure transportation is accessible to those who need it.
By stopping the taxi tax, you will be providing a lifeline to all of our members and the different groups we represent, many of whom rely on these services just to live their lives in a safe and dignified way.
Yours sincerely,
The Down’s Syndrome Association
Re-Engage UK
Survivors’ Trust
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Pubs, restaurants and clubs, which all rely heavily on people using cabs, will be hit particularly hard.
According to the consultation fares will go up by around 1.25%, adding between ￡2.70 and ￡5.60 annually for the average passenger.
But some organisations have warned adding VAT to minicab trips could force up fares by up to 20%, putting vital late night transport out of reach for many, which will mean fewer people being able to afford an evening out.
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Some 49% of minicab users said the most common reason for using them is to get to or from a night out.
Polling for the Stop the Taxi Tax coalition found that 71% of people are opposed to the measure.
The Treasury has been contacted for comment.