TfL say the increase “aims to find a balance between maintaining income levels for drivers, who face disproportionately higher costs in order to work than average Londoners, while ensuring passengers still get a fair price” and is the lowest increase since 2004.
Approval of the increase follows consultation with the taxi trade, passenger watchdog London TravelWatch and the London Chamber of Commerce and Industry.
Mayor of London, Boris Johnson, said: “The Capital is blessed with wonderful cabbies and we’ve deliberated long and hard to come up with an increase we think is fair to everyone during these tough economic times. I hope this increase will allow cabbies to meet the annual increases in insurance and fuel costs. But also help those with older cabs bring their vehicles in line with our desire to improve the air we all breathe in this great city by driving the type of clean, green taxis that will achieve that aim.”
Welcoming the decision Bob Oddy, General Secretary of the Licensed Taxi Drivers Association, said: ” Like everyone else London’s cabbies continue to face significant financial challenges not least due to significant increases in taxi running costs such as fuel and insurance. This is the lowest increase in fares since 2004 and shows that hard working cabbies continue to face the same financial challenges as their customers.”
