Base rate taxi fares in North Devon to rise by a quarter as drivers feel the pinch

North Devon Council has not increased the Hackney carriage fares since 2022 and cab drivers are feeling the pinch, particularly with fuel costs skyrocketing.

Members of the council’s licensing and community safety committee agreed to put the flag rate (starting charge) up from £3.10 to £3.90 after drivers said the £3.60 first proposed was ‘disappointing’.

It equates to a 26 per cent rise.

The flag rate on larger vehicles carrying five people or more will rise from £4.70 to £5.85.

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A 20p surcharge on total journeys will be added when fuel costs go above £1.70 a litre with further increments of 20p every time fuel increases by 5p a litre beyond that.

Councillors considered increasing the running mile charge but backed down on this after fears that passengers would not be able to afford the fee, particularly the elderly on limited pensions.

In addition, the committee increased the waiting time from 25p to 30p per minute and implemented a minimum 10 minute hire period for non-motorised vehicles, namely a horse and carriage which transports people around Ilfracombe, whilst increasing the fare from £2 to £2.40 a minute.

During a consultation, taxi drivers said they were satisfied with the night flag rate of £4.70 and £6.30 for larger vehicles but day rates were “making it increasingly difficult for drivers to earn a sustainable living.”

One even called the planned £3.60 rise “an insult” after waiting so long for an increase. In nine years the flag rate had gone up by 30p.

Another said they had earned £57 in five shifts after 50 per cent of their income had gone out in petrol costs; their 14-year-old son earned more delivering newspapers and “hadn’t spent £1,400 on qualifying.”

One driver said based on the consumer price index the starting rate of £2.80 in 2016 would now equate to approximately £3.95.

“This demonstrates how far behind the current tariff has fallen relative to actual economic conditions,” they said.

“Most daytime fares are short journeys and as a result, the starting rate is the single most important factor in determining whether a driver can earn a sustainable income.

“Many drivers regularly see effective hourly earnings fall between £6 and £8 before expenses — well below the national minimum wage.

“Once fuel, insurance, maintenance, and other running costs are accounted for, it becomes extremely difficult to make a living during daytime hours.”

Councillors were concerned that current fuel costs which had risen drastically in the last two weeks due to the conflict in the Middle East – diesel is nearing £2 a litre – could continue or get even more expensive in the next few months.

Councillor Simon Maddocks said setting a larger increase in taxi rates was sensible as it was a “safety net” over a volatile period and it could be reviewed again in two years.

Taxi drivers have the choice of whether to implement the increase which now has to go through a public consultation, much to the dismay of one driver.

“I have never heard of any company large or small asking the public whether a rise should be granted – this needs to move on with the times,” they said.

Fee increases are expected to come into effect in July.

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