Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Black cab boss: Extending grants for electric taxis is ‘essential’

The Government’s Plug-in Taxi Grant is only guaranteed to run until April 5.

Neil Lancefield
Sunday 11 February 2024 10:06 GMT
Grants worth up to £7,500 for new electric taxis must be extended to avoid drivers holding onto older, more polluting vehicles for longer, a trade leader has warned (Alamy/PA)
Grants worth up to £7,500 for new electric taxis must be extended to avoid drivers holding onto older, more polluting vehicles for longer, a trade leader has warned (Alamy/PA)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Grants worth up to £7,500 for new electric taxis must be extended to avoid drivers holding on to older, more polluting vehicles for longer, a trade leader has warned.

The Government’s Plug-in Taxi Grant (PiTG), which provides a £7,500 discount on the price of a new electric taxi, is only guaranteed to run until April 5.

Steve McNamara, general secretary of the Licensed Taxi Drivers’ Association (LTDA), said it is “essential” the scheme continues.

He told the PA news agency that removing the grants would bring the cost of a plug-in hybrid electric LEVC TX taxi bought on finance to as much as £110,000.

“This would be absolutely disastrous because taxi drivers thinking of buying a new vehicle will try to hang on to old vehicles,” he said.

It is a tiny fraction of a drop in the ocean

Steve McNamara, LTDA

“It’s bad for us, it’s bad for London and it’s got to be bad for the Government.

“They tell us we’re the best cab service in the world, they give us lots of platitudes about how wonderful it is that we buy these vehicles.

“But are they prepared to put a little bit of money in to keep us doing it?

“By Government standards it is a tiny fraction of a drop in the ocean.”

Chancellor Jeremy Hunt will deliver his spring Budget in the House of Commons on March 6.

Since 2018, taxis licensed in London for the first time have been required to be capable of travelling minimum distances powered solely by electric batteries.

Latest Transport for London figures show 56% of the 14,750 cabs licensed in the capital as of February 4 were in that category.

Mr McNamara claimed increasing the number of electric taxis through grants is “a win-win-win for everyone”.

He said taking a diesel vehicle off the road “improves air quality for everybody”, drivers benefit from their purchase being subsidised “a little”, and passengers get to travel in modern vehicles that are fully wheelchair accessible.

LEVC TX taxis are built in Ansty, Warwickshire, by the London Electric Vehicle Company, owned by Chinese company Geely.

Mr McNamara suggested a reduction in demand for the vehicles could put the future of the factory at risk.

He said: “Are the Chinese going to keep pumping money into it or are they going to pull the factory?

“Are they going to shift production to China?

“They’re obviously going to be looking at all of those things.

“That decision process is not going to be helped if the Government withdraws the Plug-in Taxi Grant.”

A Department for Transport spokesperson said: “We’re committed to supporting the switch to electric, and through this grant we have provided over £50 million to support the purchase of 7,000 zero emission-capable taxis to date.

“The grant is committed until the end of this financial year, and as always it remains under continual review.”

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in