Massive change to taxi fares as millions of Brits face forking out hundreds more a year
BAR bosses last night urged Jeremy Hunt to ditch a hated taxi tax that will hike prices for millions of revellers.
Nightlife chiefs warned the levy will add £200 each year to cab rides home.
It could force more clubs to shut as drinkers opt to stay home instead of forking out on hefty fares.
There are also fears the tax could compromise the safety of women getting home after a night on the town.
Michael Kill, Night Time Industries Association chief, said the tax will be a “hammer blow” to bars and pubs.
He told The Sun: “Our night time establishments rely heavily on people using cabs and the taxi industry.
“This new tax would be a hammer blow not just to people enjoying a pint or a night out, but to jobs and livelihoods of people working in the industry.
“It is already difficult for people to get home after a night out, with taxis one of the few options available, and slapping a new tax on one of the few available options would hurt businesses nationwide.”
A High Court judgement following a legal battle with Uber now means taxi firms are responsible for charging VAT on the fares.
The Treasury are now facing calls to scrap it from the Stop the Taxi Tax campaign who say the rise is unfair amid the cost-of-living crisis.
Discussions between the sector and Whitehall have taken place with calls to change the law to make sure the taxi operators aren’t hit.
The government has pledged to consult on the High Court ruling in the New Year, but campaigners say this risks kicking the can down the road.
Over a third of Brits say the tax would make them less likely to use cabs, with 39 per cent saying it would have a negative impact on their social life.
Gareth Cadwallader, spokesperson for Stop the Taxi Tax and a cab driver from Shrewsbury, said: “I spend lots of my time driving customers to pubs, bars and clubs and I really worry that the taxi tax will make life so much tougher for punters and people who work in the industry.
“It would be a real blow to people who enjoy a few drinks after work and depend on cabs to get home.
“The last thing we all need is yet another unnecessary tax during a cost-of-living crisis.”