Merthyr Tydfil Council has decided not to increase taxi licensing fees following concerns that the costs would be passed on to customers through higher fares. The decision was made at a full council meeting on Wednesday, July 1, after a consultation process revealed significant opposition from both the taxi trade and the public.
Proposed Fee Changes
The proposed changes would have seen a three-year licence for a new driver increase from £272 to £312, a three-year driver licence renewal rise from £230 to £290, the vehicle fee go up from £154 to £217, and the private hire operator five-year licence fee increase from £135 to £394.
The council had reviewed its current fee structure, benchmarking against neighbouring Welsh authorities, where Merthyr Tydfil appeared toward the lower end of the comparison scale. According to a council report, the proposed fees were set to cover only reasonable costs of administration, enforcement, and compliance, and were not intended to generate profit.
Consultation Results
In March, full council approved the fee changes subject to consultation, with implementation planned for May had there been no objections. However, 77 responses were received: 25 from the taxi trade and 52 from the public or other categories.
Of the taxi trade respondents, 80% disagreed with the proposed increases, stating they would request a rise in taxi tariffs charged to customers if the fees were implemented. Concerns were also raised that the increases could affect rural journeys. Other comments highlighted affordability issues and cumulative financial pressures such as fuel, insurance, vehicle maintenance, and the cost of living. Respondents also noted a perceived lack of value for money and called for clearer outcomes in enforcement and service provision, with some opposing full cost recovery being borne solely by the trade, arguing licensing serves a public interest function.
Among public/other respondents, 58% said the proposed fees should be reduced and subsidised by the authority. Public comments frequently referenced the risk that higher licensing costs would be passed on to passengers through increased fares, particularly affecting vulnerable residents and those in rural communities.
Council Decision
As objections were received, the council was required to consider them and decide whether to implement the new fees, modify them, or retain the current fees. The full council must also set a new date, no later than two months from the initially proposed date, for any fee variation to come into force after objections have been considered.
The report presented to full council on July 1 indicated that, based on current licences and projections, approval of the increases would have generated an additional £13,545 per year from vehicle licences, £14,520 over three years from driver licences, and £7,770 over five years from private hire operator licences.
Ultimately, councillors voted to keep the existing fees in place, ensuring no immediate impact on taxi fares for residents and visitors in Merthyr Tydfil.
