The London Taxi Tariff Increase 2000

Details of the new tariff for London taxis, which will come intoeffect on Saturday 20 May 2000, were announced today by Transport Minister Keith Hill. The change to the tariff was calculated in accordance with anagreed annual formulawhich takes account of average earnings and the costs associated with running a cab in London. It reflects the increases in fuel prices over the past year.

The minimum charge will remain at £1.40 but will buy 405 metres or 87 seconds (currently 438 metres or 96 seconds). The rate will then be 20p for each additional 202.5 metres or 43.5 seconds (currently 219 metres or 48 seconds) until the fare exceeds £10.60, and 20p for each 135 metres or 29 seconds thereafter (currently 146 metres or 32 seconds over £10.00).

The supplementary charges relating to additional passengers, luggage, hirings at evenings, nights, weekends and public holidays and telephone bookings, will remain unchanged.

The following examples of typical journeys demonstrate what the review will mean for passengers: 1 mile journey; distance charge only; no extras: no increase 2 mile journey; half distance; half time; 2 people; after midnight: 2.8% increase 4 mile journey; half distance; half time; 3 people; 2 items of large luggage: 6.5% increase

This is the final review of London taxi fares for which DETR Ministers are responsible. Transport for London, under the direction of the Mayor, will take over responsibility for London taxi fares when the new Greater London Authority is established later this year.

The DETR has been undertaking a research project to establish if changes to the taxi tariff would ensure a better match between supply and demand in certain areas at certain times - for example late evenings in the West End. The results of this project will be passed to the Mayor and Transport for London, with a recommendation that a review of the whole tariff system should be conducted. The research results will be published later this year.

Notes to editors London taxi fares are reviewed annually on the basis of an agreed formula which is in two parts: the national average earnings index and a range of costs associated with operating a cab (vehicles, spare parts, licence fees, fuel etc). Following the review, a typical two-mile journey currently costing £5.80 would cost £6.00 and a four-mile journey would cost £11.20 rather than £10.40.

Under the Greater London Authority Act 1999, responsibility for the regulation of London taxis will transfer to Transport for London. The Act gives the Mayor a power of direction in respect of fixing London taxi fares.