No Result
View All Result
Success American Investors
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Success American Investors
No Result
View All Result
Home Investing

A ‘taxi tax’ would hit vulnerable passengers and struggling businesses hardest

by
September 30, 2025
in Investing
0
A ‘taxi tax’ would hit vulnerable passengers and struggling businesses hardest
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Rumours that the Chancellor is preparing to add VAT to all taxi journeys in the autumn Budget have sparked concern across multiple industries, with hospitality leaders warning the move could deepen an already fragile economic environment.

Charlie Gilkes, co-founder of the Inception Group, which operates restaurants and bars across London, said: “Policies like the taxi tax destroy the ecosystem in which the hospitality sector functions.”

The sector is still reeling from last year’s Budget, which raised employer National Insurance contributions. A 1.2 percentage point NIC increase lowered the threshold at which employers must pay contributions from £9,100 to £5,000 a year. That change has already forced nearly 89,000 job losses in hospitality, almost half of the cuts seen across the wider economy, according to trade body UKHospitality.

With pubs, restaurants and bars struggling to absorb higher staffing and energy costs, any additional burden from VAT on taxis could deter customers from travelling and make commuting harder for staff, particularly women relying on taxis after late shifts.

The effects would extend beyond hospitality. Layla Barke-Jones, partner at Aaron and Partners Solicitors, pointed out that many taxi passengers are elderly, disabled or otherwise unable to use public transport: “These are the people who would be disproportionately hit.”

While local authorities would be able to reclaim VAT under their own regime, higher overall fares are expected as operators adjust pricing to cover administration and compliance costs. That would see passengers across the country paying significantly more for essential journeys.

Taxi operators warn that drivers themselves would be among the hardest hit. A spokesperson for Bolt said: “Drivers are self-employed entrepreneurs, and around 70% work outside London. A flat 20% VAT would inevitably raise costs for consumers and reduce demand, leading to a drop in driver earnings.”

Bolt argues VAT should be applied only to operators’ margins, as under the current system, rather than on full fares — a change that risks pushing up passenger costs while cutting into drivers’ take-home pay.

With speculation mounting ahead of November’s Budget, business leaders fear the so-called “taxi tax” would further erode consumer demand, increase costs for vulnerable passengers, and undermine sectors still fighting to recover from previous policy shifts.

As Gilkes and others warn, what may appear a modest change to the Treasury could prove ruinous for the ecosystem of drivers, passengers and businesses that depend on affordable, reliable taxi services.

Read more:
A ‘taxi tax’ would hit vulnerable passengers and struggling businesses hardest

Previous Post

Mone accuses Rachel Reeves of fuelling ‘government vendetta’ after Labour fringe remark

Next Post

Reeves’ Budget: is Larry’s cat food the last refuge?

Next Post
Reeves’ Budget: is Larry’s cat food the last refuge?

Reeves’ Budget: is Larry’s cat food the last refuge?

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
  • Trending
  • Comments
  • Latest
Vertica: The new Israeli start-up challenger to Viagra proving ‘life-changing’ for men with ED

Vertica: The new Israeli start-up challenger to Viagra proving ‘life-changing’ for men with ED

February 14, 2024

Last Day to Give in 2023!

December 31, 2023
Idaho Bucks Managed Care Trend

Idaho Bucks Managed Care Trend

December 5, 2023

The Producer Price Index

September 9, 2023

Individualism and the Violence of the Identitarian Left

0

0

0

0

Individualism and the Violence of the Identitarian Left

October 6, 2025

“Delving into the Origins and Impact of Oligarchy with Stanislav Kondrashov’s Oligarch Series”

October 6, 2025

Uncover the Magic of Butser BookFest 2025: A Journey Through Story and Legend

October 6, 2025

“Exploring the Intersection of Fame, Identity, and Commitment with Stanislav Kondrashov’s Wagner Moura Series”

October 6, 2025

Recent News

Individualism and the Violence of the Identitarian Left

October 6, 2025

“Delving into the Origins and Impact of Oligarchy with Stanislav Kondrashov’s Oligarch Series”

October 6, 2025

Uncover the Magic of Butser BookFest 2025: A Journey Through Story and Legend

October 6, 2025

“Exploring the Intersection of Fame, Identity, and Commitment with Stanislav Kondrashov’s Wagner Moura Series”

October 6, 2025

Disclaimer: SuccessAmericanInvestors.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 SuccessAmericanInvestors. All Rights Reserved.

No Result
View All Result
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock

Copyright © 2025 SuccessAmericanInvestors. All Rights Reserved.