Rachel Reeves warned against new Rachel Reeves has been slammed for creating a “barrier” between the public and the high street due to the “taxi tax.” Leading business groups are urging the Chancellor to rule out the levy, warning it will put thousands of drivers out of business and have a detrimental effect on the retail industry. Ms Reeves is imposing a 20% VAT charge on all private hire vehicle journeys after a legal ruling. However, businesses claim it would greatly impact Britain’s high streets.
The Federation of Small Businesses, Night Time Industries Association and British Independent Retailers Association have issued a joint letter to the Chancellor, outlining the negative impact her “taxi tax” will have on the economy. Article continues below ADVERTISEMENT Thousands of taxi drivers could be put out of business The groups, who represent millions of companies, are concerned the levy would lead to journey fares rising "dramatically", causing 25,000 drivers to quit the industry, according to the letter. The letter to Ms Reeves read: “We cannot now afford a new tax on the customers we service, which the taxi tax would represent.
The taxi tax will hit hard and be another barrier to people visiting high streets at a time when footfall is already low.” “This would degrade local transport services and mean higher prices for passengers, with a knock-on impact on small businesses, retailers, restaurants, pubs and clubs,” the business groups added. “This will in turn put jobs at risk, damage tax revenue and act as a drag anchor on consumer spending and economic growth. Our members cannot afford this and nor can the UK economy.” Ministers are consulting on the impact of two High Court judgments.
A recent court ruling concluded that taxi companies, rather than the individual drivers, were liable for the contracts with passengers. Trending SUBSCRIBE Invalid email We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding.
You can unsubscribe at any time. Read our Privacy Policy Ministers are currently consulting on the impact of two Hugh Court judgments
