Rachel Reeves urged to do something as UK taxi fares on brink of rocketing

Taxi and private hire vehicle fares could be set to soar under new changes being considered by officials. Proposals are in place to introduce a new 20% VAT on private hire vehicle trips, with the fee dubbed the "taxi tax". The new fees would directly increase the cost of every minicab trip in a blow to those relying on services to get around daily.

Those most affected include road users who regularly use taxis, with commuters travelling to work, people attending hospital appointments, or those enjoying a night out in the firing line. Campaigners have now called on Rachel Reeves and Labour to reconsider the move, which they claim would break a manifesto pledge.

Officials at Stop The Taxi Tax Campaign: "This would be a real blow to people who enjoy a few drinks after work or want to use our hospitality sector and rely on minicabs to get home.

"The Taxi Tax breaks Labour's manifesto promise not to raise VAT and would make it harder for people to support their local economy.

"We urge the Government to Stop the Taxi Tax to protect jobs and passengers from dramatically higher prices."

According to the Night Time Industries Association, recent polling shows that a whopping 71% of Britons said they would oppose the proposed VAT.

Meanwhile, 67% agree that the tax would unfairly target working people in a major setback.

A further 75% said they are worried that any new tax would make it harder for the elderly or vulnerable individuals to attend appointments.

The poll revealed that 75% of night-time users, including 80% of women, say higher fees could impact their ability to get home safely.

Kamran Mallick, CEO of Disability Rights UK warned the fees could make it harder for those to use what is considered an "essential" service.

Kamran said: "For many disabled people, private hire vehicles are not a luxury, they are essential. They provide a vital means of transport where public options are inaccessible or unreliable."

However, the impact could be more substantial with the Night Time Industries Association warning of potential longer-term consequences.

They suggest that over 25,000 drivers-more than 10% of the workforce-could consider leaving the sector if the tax were introduced.

They also warned that the "knock-on effect" would be particularly hard on small businesses, and hospitality venues.