Civic Government (Scotland) Act 1982 - Taxi Fare Review
North Ayrshire Council · 10 December 2025
Back to Licensing Committee — 10 December 2025 and its agenda
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NORTH AYRSHIRE COUNCIL 10 December 2025 Licensing Committee Title: Civic Government (Scotland) Act 1982: Taxi Fare Review Purpose: To continue the Taxi Fare Review Recommendation: That the Committee a) Review the current scale and approve in draft the scale set out as Appendix D to this report, as varied by the Committee; b) Instruct the Chief Executive to give notice of that draft; c) Continue consideration of the Review until a further meeting of the Committee at least one month after that public notice has been given. 1. Executive Summary 1.1 Under of the Civic Government (Scotland) Act 1982 (“the Act”), the Council, as Licensing Authority, must from time to time review the maximum fare that taxis operating within North Ayrshire may charge. The Act requires that this should be done at intervals of not more than eighteen months, counted from when the current Scales came into effect. The current Scales are attached at Appendix A. 1.2 When the Committee last considered this matter it adopted a Staged process for review, namely: Stage (a) - Meeting with taxi trade representatives/taxi operators to discuss proposals, consider revisions and finalise draft tariff Stage (b) - Licensing Committee meeting to approve the draft tariff for consultation and authorise advertisement of the proposed tariff in local press Stage (c) - Public Consultation – to invite representations following advertisement Stage (d) - Licensing Committee meeting to consider representations and to fix the new Scales Stage (e) - Notification of the Scales to the Trade Stages (f) and (g) – Advertisement of the new Scales, depending whether there is an appeal to the Traffic Commissioner
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1.3 The fares fixed by the Committee are the maximum fares which may be charged. Operators may charge less if they wish. While the Council must review the level of fares, it does not require to alter them.. 1.4 Once the fares have been reviewed and fixed, taxi operators have a right of appeal to the Traffic Commissioner for the Scottish Traffic Area if they disagree with the Council's decision. 2. Background 2.1 The current Scales took effect on 18 November 2024, following the previous review. 2.2 In accordance with the statutory timetable, officers have now commenced the next review. The Stage (a) consultation meeting with representatives of the taxi trade was held on 23 October 2025. A Minute of that meeting is attached as Appendix B. 2.3 In preparing draft Scales, the Committee should have regard to: a) Scottish Government guidance to licensing authorities on taxi fare reviews; b) the current Scales; c) general economic indicators relevant to taxi operating costs; and d) the views of the trade. (a) Government Guidance 2.4. The Government Guidance is in "Taxi and Private Hire Car Licensing: Best Practice for Licensing Authorities", Second Edition, April 2012, Paragraph 6.2. This adopts the guidance in Scottish Development Department Circular 25/1986. The relevant part of that is Paragraph 2.37: "The Secretary of State expects that in fixing fares authorities will want to pay primary regard to the costs incurred by the trade, having regard to the capital costs. (including interest payments) of the vehicles, the costs of maintaining and replacing them to the standards required by the licensing authority, the costs of employing drivers, and the prevailing levels of wages and costs in related road transport industries. In the Secretary of State's view the public interest is better served by ensuring the maintenance of an adequate taxi service by giving the trade a fair return than by depressing fares for social reasons, however understandable. If fares are fixed at a level higher than the market can stand, the trade is free to reduce them." (b) the current Scales 2.5. The current Scales are attached at Appendix A to this report.
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(c) General Economic Indicators 2.6 Appendix C (“Economic Indicators”) summarises relevant statistical indicators obtained from the Office for National Statistics and other official sources. These include: The Consumer Prices Index (CPI – “all items”); CPI components for transport and motor fuel; and Changes in the National Living Wage/National Minimum Wage. The figures are presented from November 2024, when the current Scales took effect, to the most recent available “release date”. They are intended to give an indication of how general prices and specific elements of taxi operating costs have moved over that period. (d) the views of the Trade 2.7 The views expressed at the Stage (a) consultation meeting are recorded in Appendix B, in so far as stated at the Consultation meeting. In summary: Representatives highlighted ongoing increases in insurance, repairs and maintenance, fuel and wage costs; They considered that the current flag fall was no longer sufficient to reflect these costs; They proposed a modest increase to the initial charge under Tariffs 1 and 2, while leaving the mileage and waiting-time elements unchanged; and They suggested that the festive tariff should begin at 7pm on Christmas Eve and 7pm on New Year's Eve, to reflect demand and operating conditions on those evenings. 3. Proposals 3.1 A draft set of revised Taxi Fare Scales has been prepared by officers, taking into account of the guidance, the economic indicators and the representations from the trade. The draft Scales are attached at Appendix D. This is only a draft and has been prepared by officers, not the Committee, for the purpose the purpose of facilitating discussion. It is open to anyone participating in the review process to suggest that the Licensing Committee should consider other factors or that an alternative charging basis should be adopted. In order to keep to the statutory timetable, anyone making any representations about the draft should make them during the subsequent public consultation. The Committee should review the Scales, adopt a draft proposal, and instruct the Chief Executive to give public notice of that draft. 3.2 In summary, the draft Scales would: Increase the Tariff 1 flag fall from £3.50 to £4.00 for the first three-quarters of a mile, with no change to the mileage or waiting-time charges; Increase the Tariff 2 flag fall from £4.00 to £4.50, again with no change to the mileage or waiting-time charges; Make no changes to the boundary zone, large-vehicle or soiling charges; and
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Amend Tariff 3 so that the festive tariff should begin at 7pm on Christmas Eve and 7pm on New Year's Eve. 3.3 The Committee may wish to note that because only the flag fall is altered, the percentage increase is greater on short journeys and tapers off on longer journeys. This is demonstrated on the table below: Tariff Example Journey Current Fare (£) Proposed Fare (£) Increase (£) Approx. % Increase 1 (Normal) 1 mile 4.08 4.58 0.50 12.3% 1 (Normal) 2 miles 6.38 6.88 0.50 7.8% 1 (Normal) 5 miles 13.27 13.77 0.50 3.8% 2 (Higher) 1 mile 4.75 5.25 0.50 10.5% 2 (Higher) 2 miles 7.75 8.25 0.50 6.5% 2 (Higher) 5 miles 16.75 17.25 0.50 3.0% Assumptions - First ¾ mile charged at the flag fall then the remaining distance at the per-mile rate. - No waiting-time or extra charged included - Figures rounded to the nearest penny. Actual metered fares will be in 10p increments and may differ slightly. 3.4 At this Stage (b) meeting, the Committee is invited to adopt a draft proposal for consultation and to instruct the Chief Executive to give public notice of that draft in terms of section 17 of the Act. The consultation period (Stage (c)) must be at least one month. After the consultation period, the Committee will meet again (Stage (d)) to consider any representations and to fix the Scales. 4. Implications/Socio-economic Duty Financial 4.1 The Taxi fare structure has substantial implications for both the trade and the community. In addition, legal costs to the Licensing Authority may arise if the fare review becomes subject to an appeal to the Traffic Commissioner, which may affect future Licence fees. Human Resources 4.2 None Legal 4.3 The review and fixing of taxi fares is a statutory function under section 17 of the Civic Government (Scotland) Act 1982. The procedure described in this report is designed to ensure compliance with those requirements and to preserve the right of appeal for operators.
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Equality/Socio-economic 4.4 A screening exercise indicates that a full Equality Impact Assessment is not required at this stage. No specific socio-economic implications have been identified, although any issues identified during consultation will be brought to the attention of the Committee. Climate Change and Carbon 4.5 None Key Priorities 4.6 North Ayrshire Council has priorities for “Communities and Local Democracy” and “Wellbeing” in the Council Plan 2023-2028. An effective licensing system, e.g. monitoring the 'fit and proper' status of hire-car drivers and the safety of their cars, helps achieve Strategic Aim-Wellbeing. Community Wealth Building 4.7 There are no Community Wealth Building issues. Islands Communities Impact Assessment (ICIA) 4.8 None United Nations Rights of the Child (UNCRC) 4.9 None Consumer Duty 4.10 The review of taxi fares supports consumer protection by ensuring that fare structures remain transparent, proportionate and are fair to both the Trade and the general public. 5. Consultation 5.1 The Stage (a) consultation meeting with trade representatives is described in section 2 and Appendix B. Wider consultation with the trade and general public will take place by way of statutory public notice at Stage (c). Aileen Craig Head of Democratic Services For further information please contact Raymond Lynch, Senior Manager (Legal), on raymondlynch@north-ayrshire.gov.uk
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Background Papers Appendix A - Current NAC Taxi Fare Scales (from 18 November 2024) Appendix B - Minute of Trade Consultation Meeting, 23 October 2025 Appendix C - Economic Indicators Appendix D – Draft Proposed Taxi Fare Scales
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Taxi Fare Scales
These are maximum fares – the driver can:
- choose to charge less than the meter, or
- agree a fixed fare with the passenger before the journey
starts (so long as the agreed fare is not more than the Scale
fare)
Tariff 1 (Normal)
Up to the first 3/4 mile - £3.50
Then each mile - £2.30 (in 10p units)
Waiting: up to 10 minutes - £3.50 (and then 10p every 20 seconds or
part)
Tariff 2 (Higher)
Up to the first 3/4 mile - £4.00
Then each mile - £3.00 (in 10p units)
Waiting: up to 10 minutes - £4.00 (and then 10p every 20 seconds or
part)
Tariff 2 applies if the journey starts and/or ends:
- in the period 12.00 p.m. (midnight) to 7.00 a.m. ("Night")
- on a Sunday
- on the following Public Holidays:
Good Friday
early May Bank Holiday
Spring Bank Holiday
Summer Bank HolidayPage 8
30 November (St Andrew’s Day) If a Bank Holiday is on a weekend, the following Monday is treated as the Bank Holiday Tariff 3 (Festive period) If the journey starts AND/OR ends from 25th December until 26th December at 7am or from 1st January until 2nd January at 7am, the fare is double Tariff 1. Boundary Zone Charge If the journey is from the Zone for which the vehicle is licensed to another Zone in North Ayrshire: the fare is whichever of Tariff 1, 2 or 3 would otherwise apply, plus 50%. Large Vehicle Charge (5 or more passengers) If the vehicle starts by carrying more than 4 passengers, the fare is charged as an extra 50% on whichever of Tariff 1, 2 or 3 would otherwise apply. The higher fare applies until the hire ends, even if some of the passengers leave the vehicle earlier and there are fewer than 5 left in the vehicle. Extra Charges Soiling Charge - £50 Notes 1. If two Tariffs could apply to a journey, the driver can charge the higher one. The metered charge is the maximum which can be charged. The driver can always charge less. 2. These Scales apply to journeys which both start and end within North Ayrshire. The Council do not set fares for journeys beyond the
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Council area. The passenger and the driver should agree the fare before the start of the journey. 3. Luggage shall be carried free if it is of a size which can reasonably be accommodated in the car. 4. Tariffs apply as soon as the journey starts and do not change. For example, if a journey starts at 6.30 a.m. (Tariff 2 is "Higher") but ends at 7.30 a.m. (Tariff 1 is "Normal"), then the fare is still Tariff 2 because the journey started at night. 5. The meter can only be started immediately before the vehicle moves off and must be stopped when the vehicle arrives at its destination. The meter cannot be used while the vehicle is being loaded before moving off or being unloaded after the vehicle stops at its destination, unless the passenger has asked the driver to wait. 6. There is no extra charge for loading, carrying or unloading passengers with wheelchairs, assistance animals or anything the passenger wants to have carried.
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Civic Government (Scotland) Act 1982: Taxi Fare Review Minute of Trade Consultation meeting under Section 17(4A)(a) held on Thursday 23 October 2025 at 10.00 am at Cunninghame House, Irvine Councillors Present: Eleanor Collier (Convenor), Ronnie Stalker and Donald L Reid Council Officers Present: David Grier (Solicitor, Legal), Christopher Pollock (Licensing Manager), Drew Robertson (Civic Licensing Standards Officer) and Ashley Kellas (Administration Assistant) Operators of Taxis in Attendance (and Licence Numbers): Billy Bruce (77, 97 and 240) (Member of 3 Towns TOA) James McDowall (241) The Convenor opened the meeting by explaining that the purpose of today’s meeting was to gather the views of operators in advance of a meeting of the Licensing Committee to make a proposal for draft Taxi Fare Scales. This would only be a draft, not a decided tariff, and would be published in newspapers. The public, including the operators present, would have 28 days to make any comments they wanted. There would then be a further meeting of the Committee, which would make a decision on the scales and that decision would include an effective from date. David Grier confirmed this was Stage B of the Taxi Fare Review process, Stage A was approved by the Licensing Committee in August. The Convenor invited those present to make comments. James McDowall (241) He stated that the fares are fair enough, however the flag fall could perhaps be increased from £3.50 to £4.00 under Tariff 1, and from £4.00 to £4.50 under Tariff 2. He said that would make a difference for Taxi operators. Also, if Tariff 3 could start at 7 pm on Christmas Eve and New Years Eve that would help a lot with attracting drivers to work at those times. He advised that costs have went up, insurance in particular which for him was now £7,000 for an annual policy. Fuel and garage repair costs are also increasing. Billy Bruce (77, 97 and 240) He said he agreed with Mr McDowall’s comments. The vast majority of hires are local / short journeys. This is a particular issue for Saltcoats and the 3 Towns area where most journeys tend to be short and ‘round in a circle’. He added that the national minimum wage is also a problem given how much the taxi actually makes.
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Eleanor Collier She noted and referred to a written submission made by another operator, Mr McGuiness, who was not present. She noted it was similar to Mr McDowall’s and Mr Bruce’s points but also included a suggestion to increase the mileage rate. James McDowall (241) He said he was not against an increase in the milage rate if the Committee were to implement that, however for him the main issue was the current flag fall. He said that he thought both East Ayrshire and South Ayrshire had higher flag fall rates. David Grier He explained the next steps in the process and that a draft proposal would be brought to a Committee meeting, most likely in December, and the matter would then go out for public consultation. He asked Mr McDowall and Mr Bruce if they had any views on additional fees being charged to customers for card payments. James McDowall (241) He said he was not aware of any issues with card payments, and nothing was required in relation to that. Drew Robertson He said that he had received queries / complaints regarding the charging of fees for card payments and said that it was dubious whether this was a legal practice or not. He added that he would be looking into this matter further. David Grier He asked Mr McDowall and Mr Bruce what their views were in relation to a local Taxi Forum. James McDowall (241) He said he thought that would be a good idea and would help to give the Council an accurate picture of what things were like on the ground for the taxi trade. He then highlighted that sometimes drivers and operators can have issues with applying for licences online. Ashley Kellas She offered to help anyone who is having any issues with making applications. James McDowall (241) He thanked Ashley for this offer and for the assistance she provides to operators and drivers. Meeting minutes ended: 10.22 am
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Economic Indicators Notes 1. The index numbers in the table are taken from the OƯice for National Statistics inflation time series data, using the series IDs referred to in the table. 2. November 2024 represents the point at which the current North Ayrshire taxi fare scales were last reviewed and left unchanged. October 2025 is the latest data available at the time of preparing this report. The ‘Total Change’ column shows the percentage movement over that period. 3. Over this period, the general ‘All Items’ CPI index has increased by 3.5%, with motoring related expenditure increasing at a higher rate of 5.8%. Petrol prices have been broadly flat overall, while diesel prices have risen modestly. 4. In addition, the statutory National Living Wage for workers aged 21 and over has increased from £11.44 per hour (1st April 2024) to £12.21 per hour (1st April 2025), an increase of 6.7% over the period since the last review. This is relevant to the earnings of many taxi drivers and to the overall cost base of the trade. Index Name November 2024 October 2025 Total Change All Items Series ID: D7BT 135.1 139.8 3.5% Purchase of Vehicles Series ID: L543 122.6 124.7 1.7% Motoring Expenditure Series ID: DOCT 606.4 640.6 5.6% Petrol Series ID: L7FP 121.5 121.4 -0.1% Diesel Series ID: L7FO 122.2 124.4 1.8%
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Taxi Fare Scales
These are maximum fares – the driver can:
- choose to charge less than the meter, or
- agree a fixed fare with the passenger before the journey
starts (so long as the agreed fare is not more than the Scale
fare)
This is only a draft and has been prepared only to assist discussion.
It cannot be taken as indicating that the Council have decided any
matter or are likely to make a particular decision.
Tariff 1 (Normal)
Up to the first 3/4 mile - £4.00
Then each mile - £2.30 (in 10p units)
Waiting: up to 10 minutes - £3.50 (and then 10p every 20 seconds or
part)
Tariff 2 (Higher)
Up to the first 3/4 mile - £4.50
Then each mile - £3.00 (in 10p units)
Waiting: up to 10 minutes - £4.00 (and then 10p every 20 seconds or
part)
Tariff 2 applies if the journey starts and/or ends:
- in the period 12.00 p.m. (midnight) to 7.00 a.m. ("Night")
- on a Sunday
- on the following Public Holidays:Page 14
Good Friday early May Bank Holiday Spring Bank Holiday Summer Bank Holiday 30 November (St Andrew’s Day) If a Bank Holiday is on a weekend, the following Monday is treated as the Bank Holiday Tariff 3 (Festive period) If the journey starts AND/OR ends at any time between 7pm on 24 December and 7am on 26 December, or between 7pm on 31 December and 7am on 2 January, the fare is double Tariff 1. Boundary Zone Charge If the journey is from the Zone for which the vehicle is licensed to another Zone in North Ayrshire: the fare is whichever of Tariff 1, 2 or 3 would otherwise apply, plus 50%. Large Vehicle Charge (5 or more passengers) If the vehicle starts by carrying more than 4 passengers, the fare is charged as an extra 50% on whichever of Tariff 1, 2 or 3 would otherwise apply. The higher fare applies until the hire ends, even if some of the passengers leave the vehicle earlier and there are fewer than 5 left in the vehicle. Extra Charges Soiling Charge - £50
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Notes 1. If two Tariffs could apply to a journey, the driver can charge the higher one. The metered charge is the maximum which can be charged. The driver can always charge less. 2. These Scales apply to journeys which both start and end within North Ayrshire. The Council do not set fares for journeys beyond the Council area. The passenger and the driver should agree the fare before the start of the journey. 3. Luggage shall be carried free if it is of a size which can reasonably be accommodated in the car. 4. Tariffs apply as soon as the journey starts and do not change. For example, if a journey starts at 6.30 a.m. (Tariff 2 is "Higher") but ends at 7.30 a.m. (Tariff 1 is "Normal"), then the fare is still Tariff 2 because the journey started at night. 5. The meter can only be started immediately before the vehicle moves off and must be stopped when the vehicle arrives at its destination. The meter cannot be used while the vehicle is being loaded before moving off or being unloaded after the vehicle stops at its destination, unless the passenger has asked the driver to wait. 6. There is no extra charge for loading, carrying or unloading passengers with wheelchairs, assistance animals or anything the passenger wants to have carried.