Taxi licence fees in Sheffield may increase for the first time since 2016

Taxi licence fees and charges could increase for the first time in eight years in Sheffield.

A proposal to increase the hackney carriage and private hire driver licences, hackney carriage vehicle licences, private hire vehicle licences and private hire operator licences has been discussed today (July 19) at Sheffield City Council’s waste and street scene committee.

Members were told that over the past three years, the income from taxi licence fees has averaged £800,000 with an average expenditure of £946,000, resulting in an average overspend of £146,000.

A presenting officer added that for the previous financial year, ending March 31, the overall costs associated with the service were £1,002,540, with an income of £829,977, resulting in a deficit of £172,564.

Members were told: “Licence fees were last reviewed in 2016 and despite an increase in service costs during this period, additional costs have not been passed on to licensees and applicants.”

In summary:

The driver licence options will be reduced to one or three years, instead of one, two or three years. 

Private hire operator licences will be reduced to one or five years, instead of one, two, three, four or five years. 

The current bandings for private hire operators of 0-50 and 51+ vehicles will be replaced with 1-50, 51-100, 101-250 and 251+ vehicles. 

Among the proposed fee changes were the increase in getting a new driving licence for a year (from £169 to £223), fees of renewal for drivers’ licences (one year – from £97 to £223, three years – from £217 to £268).

Also, hackney carriage and private hire vehicle licences (renewal) would be increased, as well as all of the operators’ costs.

The recommendation was that the taxi and private hire licence fees and charges for 2024-25 be approved for public consultation as per the statutory requirements, to take effect from October 1, 2024, should no objections be received.

During the meeting, representatives of the taxi industry told members they would like a “full breakdown” of the proposed changes in fees.

One, former councillor Ibrar Hussain, told members “this is a failed licensing service, you have failed taxi drivers in Sheffield”.

He criticised the council for not answering the telephone, the IT system being of poor quality, and enforcement being “zilch”.

Another representative said the report published ahead of the meeting lacked details.

Cllr Roger Baker (Labour) – who praised Sheffield-licenced taxi drivers – asked officers what taxi drivers (and operators) would get for the increased fees.

He was told that if the proposals were to get to the public consultation phase, further information would be provided around the financial breakdown.

Cllr Tim Huggan (Liberal Democrats) said he agreed with his colleague Cllr Sue Alston (Liberal Democrats) in that “we need to be looking at the slightly lopsided scheme of fees that seems to, I wouldn’t say penalise smaller operators but disadvantage them”.

Members voted for the recommendations and the proposal will be sent to public consultation.