Taxi Fare Review Report 2025-26 STAGE D

North Ayrshire Council · 1 April 2026
Back to Licensing Committee — 1 April 2026 and its agenda

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NORTH AYRSHIRE COUNCIL 
1 April 2026 
Licensing Committee 
Title:    Civic Government (Scotland) Act 1982: Taxi Fare Review 
Purpose:  To continue the Taxi Fare Review and to fix new Taxi Fare
Scales. 
Recommendation:    That the Committee:
(a) note the late correspondence received from Thomas Smith
after the public consultation period;
(b) fix new Scales; and
(c) set a date on which the new Scales will become effective. 
1. Executive Summary 
1.1 Under 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 and must fix Scales for fares and other charges. The Act
requires that this be done within 18 months beginning with the date on which the current
Scales came into effect. The current Scales are attached at Appendix A. They took
effect on 18 November 2024. The present review therefore requires to be concluded by
18 May 2026. 
1.2. The fares fixed by the Committee are the maximum fares which may be charged.
Operators may charge less than the metered fare if they wish. These Scales do not set
the fare for journeys which start or end out with North Ayrshire and any such fare should
be agreed between the driver and the passenger before the journey starts. The Scales
do not apply to private hire cars unless the driver and passenger agree before the
journey starts to charge by meter. While the Council must review taxi fares periodically,
it is not obliged to alter them.
1.3. 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

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Stage (b) - Licensing Committee meeting to approve the draft tariff for consultation
and authorise advertisement of the proposed tariff in the 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 on whether there is
an appeal to the Traffic Commissioner
Once the Scales have been fixed, taxi operators and representative trade bodies have
rights of appeal to the Traffic Commissioner for the Scottish Traffic Area.
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 commenced the present 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 The matter then came before the Licensing Committee at Stage (b) on 10 December
2025. At that meeting, the Committee reviewed the current Scales, approved in draft
the proposed revised Scales and authorised publication of those draft Scales for public
consultation. The draft proposed Scales are attached as Appendix D.
2.4 The Stage (c) public consultation was thereafter carried out by public notice in the
local press on 28 January 2026. That notice set out the proposed Scales and invited
written representations.
2.5 No written representations were received during the statutory public consultation
period.
2.6 On 17 March 2026, after the expiry of the statutory consultation period, the Licensing
Authority received correspondence from Thomas Smith, a taxi operator, seeking an
emergency increase of 50 pence per hire in light of recent fuel price increases. That
correspondence was not submitted as part of the statutory consultation process. It
has, however, been brought to Members’ attention as late correspondence concerning
current trading conditions. A copy is attached as Appendix E.
3. Proposals 
3.1 The Committee should now: 
(a) review the current Scales,
(b) note the late correspondence received after the consultation period;
(c) fix new Scales, and
(d) decide the date when the new Scales will take effect. This date will then be the
start of the 18-month period leading to the next Review.

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3.2. In fixing Scales, the Committee should consider:
a) Scottish Government guidance on taxi fare reviews;
b) the current Scales;
c) general economic indicators relevant to taxi operating costs;
d) the views of the Trade; and
e) any written representations or other correspondence brought before it.
Government Guidance
3.3 Scottish Government guidance advises licensing authorities, in conducting a tariff
review, to pay particular regard to the costs incurred by the trade, including vehicle
costs, maintenance and replacement costs, employment costs and wider wage and cost
levels in related transport industries. The guidance also makes clear that the public
interest is generally better served by maintaining an adequate taxi service and allowing
the trade a fair return than by depressing fares for social reasons. If fares are fixed at a
level higher than the market will bear, operators remain free to charge less.
Current Scales
3.4 The current Scales are attached at Appendix A.
Economic Indicators
3.5 Appendix C summarises relevant economic indicators obtained from official sources
and considered at Stage (b). These show that, over the period from November 2024 to
October 2025:
• All Items CPI increased from 135.1 to 139.8, being an increase of 3.5%;
• the Purchase of Vehicles index increased from 122.6 to 124.7, being an increase
of 1.7%;
• Motoring Expenditure increased from 606.4 to 640.6, being an increase of 5.6%;
• the Petrol index fell slightly from 121.5 to 121.4; and
• the Diesel index increased from 122.2 to 124.4, being an increase of 1.8%.
3.6 Appendix C also notes that the statutory National Living Wage for workers aged 21 and
over increased from £11.44 per hour to £12.21 per hour over that period, which is
relevant to the earnings of many taxi drivers and to the overall cost base of the trade.
Views of the Trade
3.7 The views expressed at the Stage (a) consultation meeting are recorded in Appendix
B. 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 those 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.

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Late Correspondence from Thomas Smith
3.8 Officers have considered the late correspondence from Thomas Smith. It is recognised
that recent fuel prices may have increased operating costs for taxi operators. However,
the statutory process under section 17 of the Act is framed around the proposal,
consultation upon, and fixing of taxi fare Scales, together with a specified date on which
those Scales are to come into effect. It does not provide any clear mechanism for the
imposition of a temporary or emergency supplement of uncertain duration which would
later fall away automatically if fuel prices reduce.
3.9 In particular, officers do not consider that there is a proper basis within the present
review to impose a temporary additional charge of 50 pence per hire linked to future
fuel-price movements, where there is presently no objective basis on which to determine
how long such an additional charge should remain in force or when the position should
revert.
3.10 If the Committee is minded to alter fares as part of the current review, the safer course
is to do so by fixing revised Scales on a permanent basis through the statutory process.
If fuel prices and other operating costs remain materially elevated, the Committee may
wish to note that the 18-month period is a maximum interval between reviews rather
than a minimum waiting period. If sustained evidence later emerges that a further
change is justified, a fresh fare review could be commenced before the end of the usual
cycle.
3.11 Officers therefore recommend that the Thomas Smith correspondence be noted as
relevant background on current cost pressures, but that no attempt be made in this
review to create a temporary emergency fuel supplement.
Options Open to the Committee
3.12 There are at least four options open to the Committee: 
a) the Scales could remain unchanged from their current values. If the Committee
wished this, it should dispense with the requirement in the licence conditions that
operators have their meters recalibrated when the Fare Scales are fixed. This
dispensation would relate only to the present review; 
b) the Committee could fix the Scales in the form of the draft proposal previously
adopted and advertised for public consultation, namely: 
i) Tariff 1 flag fall increased from £3.50 to £4.00 for the first three-quarters of a
mile, with no change to mileage or waiting-time charges;
ii) Tariff 2 flag fall increased from £4.00 to £4.50, again with no change to
mileage or waiting-time charges;
iii) Tariff 3 amended so that the festive tariff begins at 7pm on 24 December
and 7pm on 31 December; and
iv) no change to the boundary zone charge, large vehicle charge or soiling
charge; 
c) the Committee could fix the Scales in some other permanent form, if Members
consider that justified by the material before them; or

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d) the Committee could fix Scales in this review and, if Members consider that current
cost pressures may require further reconsideration, direct that a further fare review
be commenced earlier than the usual cycle. 
3.13 Officers do not recommend attempting to impose a temporary emergency surcharge
linked to fuel prices as part of the present review, for the reasons set out above. 
3.14 Members may wish to note that, because the draft proposal alters only the flag fall under
Tariffs 1 and 2, the percentage increase is greater on shorter journeys and tapers off
over longer journeys. The comparison table considered at Stage (b) illustrated the
following examples: 
Tariff 1 (Normal), 1 mile: current fare £4.08, proposed fare £4.58, increase £0.50,
approximate increase 12.3% 
Tariff 1 (Normal), 2 miles: current fare £6.38, proposed fare £6.88, increase £0.50,
approximate increase 7.8% 
Tariff 1 (Normal), 5 miles: current fare £13.27, proposed fare £13.77, increase £0.50,
approximate increase 3.8% 
Tariff 2 (Higher), 1 mile: current fare £4.75, proposed fare £5.25, increase £0.50,
approximate increase 10.5% 
Tariff 2 (Higher), 2 miles: current fare £7.75, proposed fare £8.25, increase £0.50,
approximate increase 6.5% 
Tariff 2 (Higher), 5 miles: current fare £16.75, proposed fare £17.25, increase £0.50,
approximate increase 3.0% 
3.15 If the Committee fixes new Scales at this meeting, it must also set a date on which those
Scales are to come into effect. That date should allow time for: 
a) notice of the fixed Scales to be given to operators and consulted trade bodies;
b) expiry of the 14-day appeal period;
c) publication of the fixed Scales following expiry of that appeal period, if there is no
appeal; and
d) any necessary meter recalibration. 
3.16 In addition, the Council has previously set a Monday effective date to allow operators
to arrange meter recalibration over the preceding weekend. 
3.17 On that basis, the proposed effective date is Monday 4 May 2026. This would allow time
for the required notice, expiry of the appeal period, publication of the fixed Scales and
any practical arrangements required by the trade. If the Committee wished to allow a
longer lead-in period, it could instead fix a later Monday.

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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.
The Council is required to meet the expenses of the Traffic Commissioner whether or
not the Council’s decision is upheld. 
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 that statutory scheme and to preserve the right of appeal for
operators. 
Equality/Socio-economic 
4.4 An "Equality Impact Assessment" is not considered necessary. There are no socio-
economic implications of the proposals. 
Climate Change and Carbon 
4.5 None. 
Key Priorities 
4.6 North Ayrshire Council has priorities for Aspiring Communities in the Council Plan 2023-
2028. An effective licensing system supports public safety and public confidence in
licensed transport services. 
Community Wealth Building 
4.7 Not applicable, as the Report does not relate to tendering or procurement exercises. 
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.

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5. Consultation 
5.1 Trade consultation and statutory public consultation have taken place. In addition,
Members have been provided with late correspondence received from a taxi operator
after the consultation period had expired. There is no further consultation prescribed
before the Committee determines whether to fix the Scales and the date on which they
are to take effect. 
Aileen Craig
Head of Democratic Services 
For further information please contact Raymond Lynch, Senior Manager (Legal), on
raymondlynch@north-ayrshire.gov.uk. 
Background Papers 
Appendix A - Current Taxi Fare Scales
Appendix B - Minute of Taxi Trade Consultation meeting, 23 October 2025
Appendix C - Economic Indicators
Appendix D - Draft Proposed Taxi Fare Scales
Appendix E - Late correspondence from Thomas Smith dated 17 March 2026