Taxi Fares Review 2026 Report Stage 1 - Redacted
Renfrewshire Council · 4 June 2026
Back to Regulatory Functions Board — 4 June 2026 and its agenda
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___________________________________________________________________ To: Regulatory Functions Board On: 4 June 2026 ___________________________________________________________________ Report by: Director of Finance & Resources ___________________________________________________________________ Heading: Civic Government (Scotland) Act 1982: Review of Taxi Fares within Renfrewshire ___________________________________________________________________ 1. Summary 1.1 The Council as Licensing Authority is obliged to fix scales for the fares and other charges in its area in connection with the hire of a taxi. The legislation, the Civic Government (Scotland) Act 1982 (“the 1982 Act”), provides that fares should be fixed within 18 months beginning with the date on which scales last came into effect. 1.2 The last Taxi Fares Review was carried out during 2024 and 2025 with a revised Taxi Fares Scale being fixed by the Board on 6th February 2025. The Board determined that the new scale would come into effect as at 14th April 2025. The revised fares scale represented a change to the previous scale fixed by the Council, by: (i) increasing the minimum charge or Flag Fall from £4.05 to £4.35; (ii) increasing the additional charge, by maintaining the unit charge of 30p but reducing the distance to which that charge applies to 252 yards; (iii) increasing the charge for waiting time from 42p to 45p for each period of 2 minutes (or part); (iv) increasing the additional passenger charge (for each passenger in excess of four) from 70p to 75p; (v) allowing an increase in the Glasgow Airport pick up and drop off charge from £5 to £5.50; (vi) increasing the additional charge between midnight and 5am on Sunday to Thursday evenings from £1.90 to £2.00; (vii) increasing the additional charge between midnight and 5am on Friday and Saturday evenings from £2.30
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to £2.45; (viii) increasing the additional charge for journeys commencing after midnight on 24 December until midnight on 26 December, and from midnight on 31 December until midnight on 2 January, from £1.20 to £1.25, and (ix) increasing the soiling fee from £50 to £100. 1.3 On 3rd March 2026, the Council consulted with persons or organisations representative of the operators of taxis within its area on the current taxi fare scale, by email, requesting responses by 24th March 2026. Two responses were received within that deadline from Renfrewshire Public Hire Association and Glasgow Airport Limited. In addition, a meeting was held with taxi trade representatives on 13th March 2026, at which the review of the taxi fares was discussed, particularly in relation to the Airport pick-up and drop-off charge (“the Airport charge”) and whether the existing inclusion of shared hire provisions on the fares card should continue. The Airport operator provided a presentation at the meeting requesting a flexible approach to the Airport charge. 1.4 The existing scales require to be reviewed and new scales proposed by the Board. Thereafter, formal notification of the proposed new scales will be given via a newspaper advertisement in the local press in order that representations may be made on the agreed proposal by a specified date at least one month from the date of the newspaper advertisement. 1.5 A further report will thereafter be submitted to the Board after the last date for making representations in order that the representations can be considered and the new fare scale can be fixed. The date for the new taxi fares scale to come into effect requires to be decided by the Board. ___________________________________________________________________ 2. Recommendations 2.1 It is recommended that the Board:- (i) review the existing fares scale shown at Appendix 1 and consider the proposal received and decide whether this proposal, or other fares scale, should be proposed as a new taxi fares scale for Renfrewshire and included in the newspaper advertisement as detailed in paragraph 1.4 above; (ii) Consider, when deciding the proposed scale to be advertised, whether to remove the existing shared hire provisions; (iii) agree a proposed date of Monday 12th October 2026 for the proposed revised fare scale to come into effect;
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(iv) note that, if approved by the Board, the proposed scale will be advertised in the local press, and thereafter (v) agree that the last day for lodging representations following on the proposed fare scale being advertised shall be one calendar month after the date of publication of that advertisement. _________________________________________________________ 3. Background 3.1 Prior to fixing a new Taxi Fares Scale, the Council as Licensing Authority requires to consult with persons or organisations appearing to it to be, or be representative of, the operators of taxis in its area, review the existing fares scales and propose new scales and publish these in a local newspaper. 3.2 Consultation has taken place with organisations appearing to the Licensing Authority to be representative of operators of taxis operating in the area, namely:- • Renfrewshire Public Hire Association • Unite • Alpha Taxis • Glasgow Airport Booking Office • Renfrewshire Cab Company • Johnstone TOA • Jo Gatley, Renfrewshire Radio Taxis Ltd • Raymond Stanley • Paisley Taxi Owners’ Association (C. Thomson/ S. Williamson) 3.3 Consultation was by email of 3rd March 2026, requesting responses by 24th March 2026. 3.4 The responses received are summarised in Paragraph 3.4.1 and 3.4.2 of this report. 3.4.1 Proposal 1- Proposal 1 is from Renfrewshire Public Hire Association (“the Association”). They suggest a number of increases and also provide a report in support of their proposal from Vector Transport Consultancy.
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Specifically, they propose increases in the Flag Fall from £4.35 to £4.80 and an increase in the additional distance charge, by retaining the unit charge of 30p but changing the measure of distance from 252 yards to 228 yards. They also suggest an increase in the waiting time charge from 45p to 50p, based on the existing unit of 2 minutes (or part of that period). They propose various changes to the additional charges on the existing tariff. They seek to increase the charge for passengers in excess of four passengers from 75p. However, rather than seeking an increased amount per passenger, they request that one third be added to the metered fare for journeys with five or more passengers (aligning with Tariff 2). They seek increases in the existing late-night charges from £2 to £2.20 and from £2.45 to £2.70, respectively. They also seek to increase the additional charges during the festive period from £1.25 to £1.40. They seek removal of the provisions on the existing fares card relating to shared hires. Officers sought views in this regard from taxi representatives at the outset of this review and it was also the subject of discussion at a meeting with taxi trade representatives on 13th March 2026. At that meeting, there was unanimity among the trade representatives present that it would be desirable to remove these provisions, which are believed to be little used. The Association give reasons for their removal in their attached consultation response at Appendix 3. Based on recent experience of officers, it is not clear that these provisions are well understood and concerns have been raised that they may on occasion give rise to overcharging of passengers as a result. Finally, the Association ask the Board to allow flexibility with regard to Glasgow Airport pick up and drop off charges. They suggest two alternative approaches in this regard. This issue is addressed below, in response to the Airport’s consultation response. The Board may wish to note that the current Airport charge is £7, with the fares scale allowing £5.50. The rationale for the Association’s fares scale proposal is set out in a report from Vector Transport Consultancy, attached as Appendix 3. Comments on that report by officers are attached at Appendix 4. 3.4.2 A further response was received from Glasgow Airport Limited, which is attached at Appendix 5. This response relates in its entirety to a request for flexibility on the taxi fares scale to accommodate changes in the Airport pick-up and drop off charge. This was also discussed at the taxi trade meeting on 13th March 2026, when representatives from Glasgow
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Airport were present. Their narration regarding the personnel present, and the discussion, at the meeting on 13th March is not wholly accurate. However, the position adopted by officers during previous fares reviews has been that the Board is required by the licensing legislation to fix maximum fares and charges for the operation of taxis in their area, while acknowledging that some licensing authorities have allowed flexible charges: for example “as per current barrier value according to local signage”, at airports and ferry terminals. It is understood that City of Edinburgh Council have similarly set a specific maximum charge, albeit they have agreed a specified maximum which exceeded the Airport charge with a view to accommodating prospective increases. It is open to the Board to consider this approach. The Board may wish to note that it is understood Edinburgh Airport have recently increased their charge beyond the maximum which had been agreed by City of Edinburgh Council’s licensing committee. With reference to the comparisons set out in the response by Glasgow Airport Limited, the Board will note that taxis licensed by Councils with no Airport within their jurisdiction, such as Glasgow, will not be subject to their licensing authority’s taxi fares scale for Airport hires, as such journeys would obviously be outwith their licensing authority area and as such not regulated by that scale. 3.5 The fares as existing and as proposed are summarised at Appendix 1. 3.6 In relation to the current rate of inflation, the Consumer Prices Index (CPI) rose by 2.8% in the 12 months to April 2026, down from 3.3% in the 12 months to March. While housing and household services made the largest downward contribution to the monthly change in CPI (and CPIH) annual rates, an upward contribution from a large increase in motor fuel prices was noted, albeit counteracted by downward effects from other contributions in the transport division. The Board may wish to note that, in the previous release for March, motor fuels had made the largest upwards contribution to the monthly change in the CPI (and CPIH) annual rates. Further information in relation to the CPIH and the CPI is available at: Consumer price inflation, UK - Office for National Statistics 3.7 In terms of a Circular, 25/1986, reference is expected to be made by the licensing authority to, inter alia, the capital costs of vehicles, the cost of maintaining and replacing them to the standards required, the costs of
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employing drivers and the prevailing level of wages and costs in related road transport industries. The Circular also sets out a view that the public interest is better serviced 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. It states that, if fares are fixed at a level higher than the market can stand, then the trade is free to reduce them. The full Circular can be accessed at: https://www.gov.scot/publications/circular-25-1986-licensing-taxis- private-hire-cars/documents/ 3.8 Members will wish to consider the terms of the “Taxi and Private Hire Car Licensing - Best Practice for Licensing Authorities and Taxi and Private Hire Car Operators” (3rd Edition), which can be accessed at the following link: https://www.gov.scot/publications/taxi-private-hire-car-licensing-best- practice-licensing-authorities-taxi-private-hire-car-operators-3rd- edition/documents/ In particular, Paragraph 2.3 of this Best Practice Guidance recognises that a balanced approach is beneficial when setting taxi fares between the expectations of taxi drivers/ operators to earn a living, against the backdrop of a cost of living crisis and against the public expectation to be able to hire a taxi of reasonable quality at a reasonable price. Section 6 of the document also contains further guidance in relation to taxi fares. 3.9 Appendix 2 to this report shows fares under the current and proposed fares as they would affect standard journeys of between 1 mile and 5 miles within Renfrewshire. 3.10 The report from Vector Transport Consultancy referred to at Paragraph 3.4.1 is attached as Appendix 3, as stated above. Comments from officers in response are set out at Appendix 4. The response from Glasgow Airport Limited is attached at Appendix 5.
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___________________________________________________________________ Implications of the Report 1. Financial – there will be costs associated with the production of new fare scales, cards and advertising costs which will require to be met from existing budgets. 2. HR & Organisational Development - Nil 3. Council and Community Planning- • Our Renfrewshire is safe – the continued monitoring of taxi licensing contributes to safer communities. 4. Legal – (i) Section 17 of the Civic Government (Scotland) 1982 as amended provides that the maximum fare for the hire of taxis and other related charges shall not be greater than those fixed under that Section by the Licensing Authority. The amended section states that the Licensing Authority must fix scales for the fares and other charges within 18 months beginning with the date on which scales last came into effect. (ii) The Licensing Authority may in fixing scales alter fares or charges or fix them at the same rate as existing charges. (iii) Before fixing a new taxi fare scale, the Council must consult with persons appearing to be representative of taxi operators, review existing scales and propose new scales and advertise its proposal in a newspaper circulating in its area detailing the proposal the date when it is proposed to come into effect and stating that representations may be made within a specified period (ending at least one month from the date of the advertisement). (iv) if any representations are received, the Council require to consider these before fixing a new fares scale. 5. Property/Assets-Nil 6. Information Technology – Nil 7. Equality & Human Rights – The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations
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contained in the report because it seeks a review only of taxi fares, which the Council has a statutory duty to review at regular intervals. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety - Nil 9. Procurement – Nil 10. Risk - Nil 11. Privacy Impact - Nil 12. Climate Risk – Nil, as the report only sets out proposals received for new taxi fares in Renfrewshire for consideration by the Board and that, once a proposed new fares scale is agreed, these will be advertised. 13. Children’s Rights – the recommendations in the report are not considered to be incompatible with the UNCRC. 14. Cosla Policy Position - Nil _______________________________________________________ List of Background Papers (a) Background Paper 1 - None ___________________________________________________________________ Author: Douglas J. Campbell, Managing Solicitor (Licensing), 0141-487-1096 douglas.campbell@renfrewshire.gov.uk
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APPENDIX 1 CURRENT AND PROPOSED TAXI FARE SCALES Fares to Places Beyond the Renfrewshire Area Boundary The driver is not obliged to accept the hire. Any hire terminating outwith the Renfrewshire area will be charged at a rate to be agreed at the time of hire. Current Proposal (1) Fares by Distance Minimum fare for a distance not exceeding ½ mile £4.35 £4.80 For each additional yards or part thereof 252 yards/ 30p 228 yards/30p Fares for waiting time For each period of 2 minutes or part thereof 45p 50p Extras For each passenger in excess of 4, a fifth passenger charge of (applicable to 5, 6, or 7 seater taxis) 75p Replace with Tariff 2 (Add 1/3 to fare where 5 or more passengers) An additional charge for journeys commencing after midnight and before 5 am Sunday to Thursday £2.00 £2.20 An additional charge for journeys commencing after midnight and before 5.00 am Friday and Saturday £2.45 £2.70 Glasgow Airport Terminal Departure Charge £5.50 Flexible per barrier; or, alternatively, £8.00 or Glasgow Airport maximum, whichever is lower An additional charge for journeys commencing after midnight on 24 December until midnight on 26 December and from midnight on 31 December until midnight on 2 January £1.25 £1.40 From midnight on 24 December until midnight on 26 December the fare chargeable shall be Normal Fare plus 1/3 (Tariff 2) no change From midnight on 31 December until midnight on 2 January the fare chargeable shall be Normal Fare plus 1/3 (Tariff 2) no change Soiling Fee Soiling in this context includes any soiling by means of food, drink, vomit, urine or excrement up to a maximum of £100.00 No change
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Note: Proposal (1) also requests removal of the existing shared hire provisions from the existing fares card: Fares chargeable for journeys where a taxi is hired on an exclusive basis shall be charged in accordance with the normal fares scale determined by the Council, but shall be modified where a taxi is hired on a shared basis according to the number of hirers sharing the vehicle, as follows: 1. One hirer 100% of the fare 2. For two hirers 100% of the first hirer to the point of the second hirer and thereafter both pay 75% of the standard fare each 3. If three hirers As above to the point of the third hirer and thereafter all pay 65% of the standard fare each 4. If four hirers As above to the point of the third hirer and thereafter all pay 55% of the standard fare each 5. If five hirers As above to the point of the third hirer and thereafter all pay 50% of the standard fare each 6. On departure from the taxi of one or more hirers the fare payable will revert to the rate appropriate to the remaining number of hirers
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APPENDIX 3 Response from Renfrewshire Public Hire Association and attached report by Vector Transport Consultancy
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From: To: Subject: Date: 24 March 2026 14:30:06 Attachments: external.png finance warning.png Review of taxi tariff in Renfrewshire 2026 R3.docx To whom it may concern, Thank you for the invitation to participate in the Taxi Fares Review 2026. As an association we represent the majority of Renfrewshire Taxi Operators. Our Association commissioned Vector Transport Consultancy to conduct a review of the current Taxi Fare Scale to determine if a change to the Fare Scale should be proposed. We have attached a copy of the full report and in keeping with the recommendations contained within this report we would like to propose the following changes to the Taxi Fare Scale for your consideration. FARES BY DISTANCE Minimum fare by distance not exceeding 1/2 mile ...... £4.35 to be changed to Minimum fare by distance not exceeding 1/2 mile ...... £4.80 For each additional 252 yards or part thereof ... 30p to be changed to For each additional 228 yards or part thereof ... 30p FARES FOR WAITING TIME For each period of 2 minutes or part thereof ... 45p to be changed to For each period of 2 minutes or part thereof ... 50p EXTRAS For each passenger in excess of 4, a fifth passenger charge of .... 75p (applicable to 5,6 or 7 seater taxis) to be changed to For 5 or more passengers the fare chargeable shall be ........... normal fare plus 1/3 (Tariff 2) (applicable to 5,6 or 7 seater taxis) An additional charge for journeys commencing after midnight and before 5.00am Sunday to Thursday ..... £2.00 to be changed to An additional charge for journeys commencing after midnight and before 5.00am Sunday to Thursday ..... £2.20 An additional charge for journeys commencing after midnight and before 5.00am Friday and Saturday ..... £2.45 to be changed to An additional charge for journeys commencing after midnight and before 5.00am Friday and Saturday ..... £2.70
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Glasgow Airport Terminal pick up and drop off charge .................................................................................. £5.50 to be changed to (a) Glasgow Airport Terminal pick up and drop off charge ..... The hirer shall be liable for the cost of charges levied by Glasgow Airport for passenger pick up and drop off. Any such applicable charges will be added to the fare. or (b) Glasgow Airport Terminal pick up and drop off charge .... A maximum of £8.00 providing it is no more than the actual amount charged by Glasgow Airport. An additional charge for journeys commencing after midnight on 24 December until midnight on 26 December and from midnight on 31 December until midnight on 2 January ..... £1.25 to be changed to An additional charge for journeys commencing after midnight on 24 December until midnight on 26 December and from midnight on 31 December until midnight on 2 January ..... £1.40 With regards to the shared hire provision on the current Tariff card we propose that this section be removed in its entirety. The reasons for this are, 1. The wording of it is open to different interpretations which leaves it open for abuse. 2. Historically this cab sharing element has never been utilised in Renfrewshire. 3. We firmly believe that if this was practiced it would lead to confrontation with customers. N.B. To support the Taxi trade in Renfrewshire we ask in respect of the Glasgow Airport pick up and drop off charge that it be changed to either option (a) as adopted by other Local Authorities or due to information that was conveyed to us at a recent Taxi Trade meeting in that Renfrewshire Council's position in regards to interpretation of the legislation regarding such charges is aligned with the City of Edinburgh Council's interpretation and approach that an amount must be stated on the Tariff card then we ask that option (b) is adopted taking the same approach Edinburgh Council took to support their Taxi Drivers and set a maximum of £8.00 for this charge but stating that the amount charged is no more than the actual amount charged by the Airport. This £8.00 maximum charge is £1.00 more than the current charge and affords the Taxi drivers a degree of protection if the Airport were to increase this charge during the duration of the next Taxi Fare Scale. These are the only changes we propose and we respectfully ask that our proposal is incorporated into the new Taxi Fare Scale. Kind Regards, Jason Tannahill, Renfrewshire Public Hire association.
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Review of Taxi Tariff in Renfrewshire March 2026
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Review of taxi tariff in Renfrewshire 2026 R3 Vector Transport Consultancy www.vector-consultancy.co.uk www.taxi-surveys.co.uk CONTENTS 1 BACKGROUND 1 2 COSTS ASSESSED 2 3 CONSIDERATION OF OTHER INFORMATION 7 4 CONCLUSIONS AND RECOMMENDATION 8
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Review of taxi tariff in Renfrewshire 2026 R3, 1 Vector Transport Consultancy www.vector-consultancy.co.uk www.taxi-surveys.co.uk 1 BACKGROUND 1.1 Introduction Vector Transport Consultancy have been commissioned by Renfrewshire Public Hire Association to undertake a review of the current taxi tariff, in March 2026, in response to an invitation from Renfrewshire Council to provide proposals for a revised taxi fares scale. Recommendations for adjustments to the taxi fares scale are made, based on cost changes since the last review. 1.2 Previous reviews The taxi tariff was revised in 2025, based on costs calculated in July 2024, using the latest available data at that time. In order to assess relevant cost changes, we need to compare present day operating costs with those calculated in July 2024 and derive the proportionate change in cost between the two sets of data. The proportion of cost change is then used as the basis for recommending potential changes to the distance and time based fares used in the taxi tariff table.
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Review of taxi tariff in Renfrewshire 2026 R3, 2 Vector Transport Consultancy www.vector-consultancy.co.uk 2 COSTS ASSESSED 2.1 Overview of methodology A common approach to reviewing fares, is to use a basket of costs as a representative basis for comparing changes in overall costs, between dates. The combination of costs that is used to determine changes in cost, varies between licensing authority areas. The method used in this report to calculate the change in costs associated with operating a taxi in Renfrewshire uses several component costs which are associated with operating a taxi. These costs do not necessarily encompass all costs which are incurred by all taxi drivers and owners. The costs are intended to provide a reasonable basis for weighting the relative changes in cost for the main components of cost within the overall basket of costs. Indices of cost changes are available for several elements of motoring costs. The change in cost can vary by the element of cost. For example, the change in fuel cost can be relatively volatile compared with, for example, changes in the cost of tyres or indeed the change in vehicle purchase and depreciation cost. Therefore, it would not be reasonable to choose the variation in a single cost element (such as fuel) as the basis for deciding on changes in taxi fares. The cost indices should be weighted according to what proportion of overall cost each element represents. So, for example, if fuel accounts for say 11% of annual cost, then the fuel price index would be weighted to represent 11% of overall cost change index. The weighting of cost indices is achieved by using current [present day] costs to calculate an aggregate operating cost. The present day costs were then compared with the equivalent costs calculated for the date that costs were derived for the prior fare review. The last fare review was calculated in July 2024, using the latest costs at that date. [base date cost]. The base date costs were calculated, where possible, from the present day costs, adjusting for inflation, using appropriate inflation indices, published by the UK Office of National Statistics (ONS) The base date cost and present day costs were each then aggregated and the proportionate change in aggregate costs were then used as the basis for adjusting the taxi tariff table. difference in overall aggregate cost was used as the overall cost change index. In this way, the changes in major cost elements, such as vehicle depreciation and driver labour cost, have a greater influence than relatively minor elements such as Vehicle Excise Duty. The costs used to derive the overall change in cost index are: • Vehicle cost • Servicing • Fuel • Insurance • Vehicle Excise Duty
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Review of taxi tariff in Renfrewshire 2026 R3, 3 Vector Transport Consultancy www.vector-consultancy.co.uk • Licensing cost • Average National Earnings Some of the costs are influenced by the annual mileage driven. Based on feedback from the trade, the average annual mileage is estimated to be approximately 38,200 miles. 2.2 Vehicle Costs The taxi fleet consists of a mix of large and small vehicles. The fares calculation methodology uses representative vehicles for large and small taxis and uses costs associated with these representative vehicles. It is not feasible to determine costs for each individual vehicle in the taxi fleet. For the 2024 fares review, the representative vehicle for a small taxi was a Volkswagen Caddy. The representative vehicle for a large taxi was a Renault Traffic. The same vehicles have been used as representative vehicles for the 2026 fare review calculations. It was estimated for the 2024 fares calculation that around 75% of the taxi fleet were smaller wheelchair accessible vehicles (Volkswagen Caddy) and the remaining 25% are larger taxis (Renault Traffic). In order to provide a representative basis for costs, the costs associated with Volkswagen Caddy vehicles are assumed to be representative of all replacement small taxi vehicles. Similarly, Renault Traffic taxis are assumed to be representative of large taxi vehicles, for the purpose of calculating representative costs. Whilst not all owners follow the same practice, a common approach is to purchase a vehicle, with finance. Vehicles are commonly kept for 5 years, which coincides with common 60 month financing deals. The cost of financing a vehicle over 60 months was been taken as the representative cost of ownership for calculating costs in 2024. The same basis was used to determine the 2026 fares calculations. The annual costs associated with the two types of vehicle vary significantly. A weighted vehicle cost has been derived, which is weighted by 75% small vehicle costs and 25% large vehicle costs. Present day and base (2024) costs were derived. Typical financing costs today are £12,237 per annum for Renault Traffic (or equivalent) and £10,502 for VW Caddy (or equivalent). Taking a weighted average based on the proportion of each type of vehicle, in the fleet, the average cost is £10,935.75. 2.3 Servicing cost The cost of vehicle servicing, including parts and labour, varies by vehicle. The mean cost of servicing and maintenance was estimated to be £3,062.64 in 2024. The Office of National Statistics publish a range of inflation indices related to costs incurred by society. One of these indices relates to maintenance and repair of vehicles. Using the latest available index values, the cost of maintenance has increased between June 2024 (the value used in the 2024 calculations) and
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Review of taxi tariff in Renfrewshire 2026 R3, 4 Vector Transport Consultancy www.vector-consultancy.co.uk January 2026 by 9.37% Therefore, the March 2026 maintenance cost has been assumed to have increased from the 2024 level, to £3,349.70 in 2026. 2.4 Fuel cost Fuel consumption for the two representative vehicles varies. For the calculation of a suitable value for fuel cost, we have obtained the urban fuel consumption for the most fuel efficient diesel version of each model. The fuel consumption rates obtained were as follows: Volkswagen Caddy, 56.5 mpg Renault Traffic, 44.8 mpg For the purposes of this calculation, we have calculated the cost of fuel for an annual mileage of 38,200 miles, for each vehicle type, for both 2024 and 2026. The average cost of diesel in July 2024 was £1.506 per litre. During the week commencing 16th March 2026 (the latest report available at the time of writing), the average cost of diesel was £1.588 per litre. Therefore, based on the fuel consumption figures above, the cost of fuel for each type of vehicle is as follows: Table 1 - Fuel Costs Cost 2024 Cost 2026 Mileage 38,200 Cost per litre £1.506 £1.588 Fuel Consumption (mpg) Annual fuel consumed (gallons) Annual fuel consumed (litres) Annual fuel cost Annual fuel cost VW Caddy 56.5 676.1 3,073.6 £4,628.84 £4,880.88 Renault Traffic 44.8 852.7 3,876.4 £5,837.86 £6155.72 average 816.4 £4,931.09 £5,199.59 The average cost was derived as the average of the two vehicle types in 2024 and the two vehicle types (75% small and 25% large) in 2026. 2.5 Insurance The cost of insurance varies by the individual and vehicle insured. The average insurance cost was estimated to be around £1,677.62 per annum for the previous cost review in 2024. Office of National Statistics publish a range of inflation indices related to costs incurred by society. One of these indices relates to motor vehicle insurance. The index indicates that the cost of insurance has reduced since 2024 by 5.2% Therefore, the July 2024 insurance cost has been assumed to have decreased from the 2024 level, to £1,590.14.
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Review of taxi tariff in Renfrewshire 2026 R3, 5 Vector Transport Consultancy www.vector-consultancy.co.uk 2.6 Vehicle Excise Duty cost Vehicle excise duty has two stages of charge. For the purchase of a new vehicle, there is a first year Vehicle Excise Duty charge, followed by an annual charge in subsequent years. The duty charges have been assessed over 5 years for each vehicle type and a mean cost calculated, for each assessment year. The costs for 2024 were as follows: Table 2 - 2024 VED Costs 2024 VED rates First year Subsequent years Average over 5 years VW Caddy £680 £190 £178 Renault Traffic £680 £190 £178 Average £288 The costs for 2026 are as follows: Table 3 - 2026 VED Costs 2024 VED rates First year Subsequent years Average over 5 years VW Caddy £2,190 £195 £594 Renault Traffic £2,190 £195 £594 Average £594 2.7 Licensing costs There are some recurring licensing costs incurred, associated with operating a taxi. The 2024 costs were calculated as follows: In July 2024, licensing charges were: A taxi operators licence was renewed every 2 years at a cost of £328, equating to £164 per annum A taxi driver licence was renewed every 2 years at a cost of £120, equating to £60 per annum. Annual taxi test fees of £83.25 were required. Therefore total licensing costs per annum in 2024 was £307.25 In March 2026, licensing charges were: A taxi operators licence was renewed every 2 years at a cost of £345, equating to £172.50 per annum
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Review of taxi tariff in Renfrewshire 2026 R3, 6 Vector Transport Consultancy www.vector-consultancy.co.uk A taxi driver licence was renewed every 2 years at a cost of £126, equating to £63 per annum. Annual taxi test fees of £87.45 were required. Taxi Licence plate for rear of vehicle at a cost of £45 per annum. Therefore total licensing costs per annum in 2024 was £367.95 2.8 Average national earnings The Office of National Statistics collects and publishes earnings data in a variety of formats and from different sources. One of the sources is the Annual Survey of Hours and Earnings. This survey collects data annually and publishes results. The most recent available data is used for this assessment. The data for Scotland was obtained for 2023 for the previous assessment. That was the latest available data at the time the assessment was undertaken. That data is used as the base data for comparison with the latest available data. The average gross earnings for 2023 were £33,385. The equivalent average gross earnings for 2025 (latest available data) were £37,642. The difference in earnings between 2023 and 2025 was an increase of 12.8%. Total costs calculations The total indicative annual costs have been summarised in the following table: Table 4 - Annual Operating Costs Cost item 2024 Costs 2026 Costs Vehicle cost £10,184 £10,935.75 Servicing £3,062.64 £3,349.70 Fuel £4,931.12 £5,199.59 Insurance £1,677.62 £1,590.14 Vehicle Excise Duty £288 £594 Licensing cost £307.25 £367.95 Average National Earnings £33,385 £37,642 Total cost £53,835.63 £59,679.13 The proportionate change in overall costs between 2024 and 2026 was an increase of 10.9%.
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Review of taxi tariff in Renfrewshire 2026 R3, 7 Vector Transport Consultancy www.vector-consultancy.co.uk 3 CONSIDERATION OF OTHER INFORMATION 3.1 Retail Price Index The office of National Statistics publishes the Retail Price Index on a monthly basis. The index for June 2024 was 387.3. The equivalent index value for February 2026 (the latest data available) was 406.4. To calculate inflation between June 2024 and February 2026, we divide the later index value by the earlier index value, i.e. 406.4 / 387.3 = 1.049 Therefore, inflation between June 2024 and February 2026 was 4.9% 3.2 Consumer price index Another inflation index which has become more popular in recent years and which has generally replaced the RPI index is the Consumer Price Index (CPI). The CPI value for 2024 was 133.0. The latest value for January 2026 was 139.5. Therefore, inflation between 2024 and January 2026, based on CPI index values was 139.5/133.0 = 1.0488, which equates to 4.9%. 3.3 Comparison of UK average fares The publication Private Hire and Taxi Monthly maintains a league table of taxi fares around the UK. The table contains an average cost for a 2 mile taxi fare in the UK. In July 2024, the median position 2 mile fare, in PHTM table (rank 171) cost £7.00 In March 2026, the median position 2 mile fare, in PHTM table (Rank 169) cost £7.40. The difference in fares between 2024 and 2026 equates to an increase of 5.7%
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Review of taxi tariff in Renfrewshire 2026 R3, 8 Vector Transport Consultancy www.vector-consultancy.co.uk 4 CONCLUSIONS AND RECOMMENDATION 4.1 Conclusions There is evidence that operational costs have increased since the last fares increase. The cost increase was greater than Retail Price Inflation and less than average earnings inflation. The operational cost increase was higher than the increase in the UK average for a 2 mile taxi fare. 4.2 Recommendation It is recommended that a fares increase be considered in line with the proportionate operation costs incurred since the last increase, based on 2024 costs. As such, fares should increase by approximately 10.9%. It is not practical to simply apply this increase to each of the elements in the Taxi Tariff in Renfrewshire. It is generally preferred that some of the elements are rounded to the nearest 5 or 10 pence. Furthermore, some elements of a taxi fare are rounded up within the meter. For example, for journeys longer that the minimum fare distance (currently half a mile), the cost increases by 30 pence for each 252 yards or part thereof, so a journey which is one yard over the half mile would cost the same as a journey which is 251 yards over the half mile. Consequently, when the tariff is changed, the increase in fares charged is not a consistent percentage for all distances travelled. Various adjustment can be made to different elements of the tariff rates to generate a resultant increase of around 10.9% in a typical fare. The fare structure includes an adjustment to Tariff 1 rates of normal fare plus 1/3 to form Tariff 2. Therefore it is prudent to take this adjustment into account when considering fare adjustments. Where possible, it is recommended that fare components are divisible by 3 to facilitate Tariff 2 adjustments and where feasible, divisible by 10 to facilitate rounding of fares. The current Tariff Card for taxi fares indicates that the minimum fare for a distance not exceeding ½ mile is £4.35. Each additional 252 yards, or part thereof is charged at £0.30. If we were to apply an increase to the minimum fare and round this off, the £4.35 increased by 10.9% would be £4.8242 This would naturally be rounded to £4.80, which is divisible by 3 and fits with the Tariff 2 multiplier. The incremental distance on which charges for journeys in excess of ½ mile are currently charged is 252 yards. A charge of £0.30 is added for each additional 252 yards or part thereof. Applying the 10.9% increase to £0.30 would result in £0.333. Even if rounded up to the nearest penny, a charge of £0.35 per 252 yards is not practical. Consequently, one would normally keep the incremental cost the same, but adjust the incremental distance in line with the proposed increase in cost. The incremental distance would be reduced, so that over longer distances, more increments would be covered and this in turn would lead to a proportionate increase in cost. On this basis, we would consider reducing the 252 yard current
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Review of taxi tariff in Renfrewshire 2026 R3, 9 Vector Transport Consultancy www.vector-consultancy.co.uk increment by 10.9%, to 227.231 yards. In practice, this would be rounded off to 228 yards, which is divisible by 3. If the increase in flag drop fare and reduction in incremental distance are applied, the resultant proportionate increase in cost will vary by distance, owing to the rounding up effects of the charging structure. The differences in distance based fare are illustrated in the following tables over a variety of distances. Figure 1 indicates that over longer distances, the increase tends towards 5.80%, with the increase varying around this proportion for shorter distances. Table 5 – Proposed tariff change Option Existing Proposed Flag drop minimum fare £4.35 £4.80 Cost per additional distance increment £0.30 £0.30 Length of additional distance increment 252 228 The distance based fares comparison for the existing and proposed tariff is illustrated as follows:
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Review of taxi tariff in Renfrewshire 2026 R3, 10 Vector Transport Consultancy www.vector-consultancy.co.uk Table 6 - Distance based costs associated with tariff options
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Review of taxi tariff in Renfrewshire 2026 R3, 11 Vector Transport Consultancy www.vector-consultancy.co.uk Figure 1 - Resulting percentage increase in fare with the proposed tariff Waiting time is currently 45 pence per 2 minutes or part thereof. If a 10.9% increase were applied to this charge, the cost per 2 minutes could rise to 49.905 pence. This would in practice be rounded to 50 pence per 2 minutes or part thereof. The existing tariff card includes several extra charges. It is proposed that the majority of the extra charges are increased by 10.9% and rounded to the nearest amount which is divisible by 5. Therefore , the additional charge per passenger in excess of 4, would increase from 75 pence to 85 pence. Additional charge for journeys commencing after midnight and before 5.00 am Sunday to Thursday, would increase from £2.00 to £2.20. Additional charge for journeys commencing after midnight and before 5.00 am Friday and Saturday, would increase from £2.45 to £2.70. An additional charge for journeys commencing after midnight on 24 December until midnight on 26 December and from midnight on 31 December until midnight on 2 January, would increase from £1.25 to £1.40 From midnight on 24 December until midnight on 26 December the fare chargeable shall be normal fare plus 1/3 (Tariff 2). This increment would remain unchanged and would be applied to all fares, including any increased fares for the carriage of 5 or more passengers. From midnight on 31 December until midnight on 2 January the fare chargeable shall be normal fare plus 1/3 (Tariff 2). This increment would remain unchanged and would be applied to all fares, including any increased fares for the carriage of 5 or more passengers. SOILING FEE - Soiling in this context includes any soiling by means of food, drink, vomit, urine or excrement up to a maximum of £100.00. To remain unchanged.
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Review of taxi tariff in Renfrewshire 2026 R3, 12 Vector Transport Consultancy www.vector-consultancy.co.uk The Glasgow Airport terminal pick up or drop off charge is currently set at £5.50 in the tariff table. At the time of publication of this report, the charge levied by Glasgow Airport of pickup or drop off is £7.00. By its nature, the airport pick up or drop off charge, by being defined as a fixed amount in the tariff table, will lag behind any increases in the pick up charge at the airport, when that charge is increased by the airport operators. Changes to the pick up or drop off charge in future are unlikely to occur at the same time as future tariff tables are updated. Therefore it is proposed that the charge definition is amended in the tariff table. The proposed definition for applying the Glasgow Airport terminal pick up or drop off charge is: “Glasgow airport pick up and drop off charges - The hirer shall be liable for the cost of charges levied by Glasgow Airport for passenger pick up and drop off. Any such applicable charge will be added to the fare” Similar additional costs are applied in the taxi tariff tables by some other authorities where external charges are incurred. For example, ferry charges, airport pick up and drop off charges and toll charges. Proposed additional tariff for 5 or more passengers Larger taxis offer the opportunity to carry larger groups of passengers, with up to 7 passenger seats in the vehicle. Larger taxis also offer flexibility for wheelchair users, with potential to accommodate more passengers and luggage, along side a wheelchair bound passenger. However, large taxis cost over £2,000 per annum more than a small taxi, to operate. There are some potential benefits for operators of large taxis, through enhanced fares, for large groups. Under the proposed fares, there would be an additional 85 pence per passenger, in excess of 4. Therefore, if there were, for example, 7 passengers on board, there would be an additional fixed charge of £2.55. There are relatively few fares which require the carriage of more than 4 passengers. Consequently, the additional £2.55 potentially available to carry 7 passengers does little to offset the additional cost of operating a large taxi. Therefore, there is limited incentive to operate a large taxi. Using an example of 5% of fares for large taxis carrying five or more passengers and also assuming that the additional fare was the maximum £2.55, then the additional fare would cover the additional cost for the first two miles. Thereafter, the additional cost for running a large taxis would not be met by the additional fare for carrying more than 4 passengers. The availability of large taxis means that a party of 5 can travel far more cheaply in a large taxi than they could in two smaller taxis. Consequently, the availability of large taxis in the fleet offers some significant benefits to the travelling public. Some licensing authorities allow a multiplier to be charged on the fare, if five or more passengers are carried. This multiplier recognises the public benefit of having larger taxis in the fleet and the additional cost of operating these taxis.
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Review of taxi tariff in Renfrewshire 2026 R3, 13 Vector Transport Consultancy www.vector-consultancy.co.uk One example of an additional tariff for 5 or more passengers is that defined by Stirling Council. The Stirling Council taxi fare table defines an additional tariff for carrying 5 or more passengers, which is approximately 60% more than Tariff 1. It is proposed that in Renfrewshire an additional tariff level is introduced, which is 1/3 more than Tariff 1 and may be charged when 5 or more passengers are carried. This additional tariff will incentivise operators to continue to operate larger taxi vehicles and offer the benefit of the option of using a larger taxi to the travelling public.
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APPENDIX 4 Officers’ Comments in response to Proposal 1 and Report from Vector Transport Consultancy The report from Vector Transport Consultancy (“the Consultancy”) was prepared in March 2026, using costs from that time to calculate an aggregate operating cost. They have noted that the current fares scale is based on data from July 2024. Officers have considered the terms of the report and would offer the following observations. It is noted in the report that it is “common” for vehicles to be kept for a period of 5 years to coincide with financing periods. As at early April 2026, officers noted that, of 226 licensed taxis, only 51 licensed taxis were five years old or newer. Therefore, while this may be considered a common practice for some operators, it is not the position for a majority of licensed taxis in Renfrewshire. A majority of the 226 vehicles referred to above were found to be over 6 years old, with a significant number among that majority being over 7 and 8 years old. The general assumptions in the report with regard to the current financial and economic climate are noted. The report provides information on both costs and average national earnings, while the Board will note that many operators will be self- employed. While excluding the average national earnings from calculation would reduce the increase in costs from 10.85% to 7.76%, officers have noted from the figures set out in the report a difference of 12.75% in earnings between 2023 and 2025 and have also noted that it is suggested by Vector Transport Consultancy that fares should increase by approximately 10.9%. Operational costs Officers have noted that the costs of Financing and Servicing are higher than expected when considering RPI and CPI; however, as the report states, the increase in costs of individual components like servicing and maintenance can be higher than a wider selection of goods. Officers have no comment to make in relation to the report as regards fuel and insurance costs. It may be noted that licensing application fees have increased by 5% since the report was received, with the cost of an application to renew a taxi licence for a period of two years having risen to £363 and, in the case of a taxi driver’s licence renewal to cover a similar period, to £133. The Board may wish to consider these points further.
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APPENDIX 5 RESPONSE FROM GLASGOW AIRPORT LIMITED
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20/03/2026 Taxi Fare Review Licensing Section Legal and Democratic Services Renfrewshire Council Renfrewshire House Ref: CY Fare Review Dear Members of the Licensing Committee, Re: Request for Update to Taxi Tariff Card Wording – Airport Drop‑Off Fee I am writing on behalf of Glasgow Airport to request an amendment to the wording on the Renfrewshire taxi tariff card at the forthcoming Fare Review. The purpose of this request is to ensure that taxi drivers licensed within Renfrewshire are able to pass on the airport drop‑off fee to passengers at the prevailing rate, rather than at a fixed, pre‑determined amount. At present, the tariff card specifies a set drop‑off fee that drivers may charge. Because the airport drop‑off fee is reviewed annually, and may change between Fare Reviews, Renfrewshire drivers are uniquely disadvantaged. Unlike taxi, private hire, and Uber operators licensed from other areas, Renfrewshire‑licensed drivers cannot pass on the full fee and must personally absorb the difference each time the fee increases. Financial Impact on Renfrewshire‑Licensed Drivers In 2026, approximately 340,000 taxi journeys will be made from the Glasgow Airport forecourt, with volumes forecast to rise to nearly 400,000 by 2030. Of these journeys, around 20% (68,000 trips) take place wholly within Renfrewshire—typically shorter, lower‑fare journeys. The current drop‑off fee at Glasgow Airport is £7.00. Renfrewshire‑licensed drivers are permitted to pass on only £5.50 to passengers, meaning they must personally cover £1.50 per journey. Over the next 12 months, this results in a cumulative loss of more than £100,000 for these drivers. Comparison Across Licensing Areas ‑ Glasgow Airport taxis (plus all other Renfrewshire‑licensed): Cannot pass on full fee; £1.50 loss per Renfrewshire journey; approx. 68.5k forecast journeys in 2026.
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‑ Other operators (including Glasgow City, other regional councils, private hire, Uber): All can pass on the full drop‑off fee; no variance. • During the most recent taxi trade meeting on 13th March 2026, Councillor Campbell expressed an interest in aligning with Edinburgh Council who also have a fixed fee on their tariff. At the most recent fare review (December 2024) the maximum tariff was fixed at £6.00 but could be no greater than the amount charged. At that point the pickup and drop off fee at Edinburgh Airport was £5.00 so the council anticipated a price increase in the time between the current and future fare review. Glasgow Airport are not against this approach in principle but still recommend it as per the request below. Our Request We respectfully request that at the next Fare Review; Renfrewshire Council updates the tariff card wording to allow for: "Airport drop‑off fees to be charged to passengers at the prevailing rate as set by Glasgow Airport." This adjustment ensures fairness, prevents financial loss to drivers, aligns with neighbouring authorities, and future‑proofs the tariff card. Glasgow Airport recognises that drop‑off fees can be unpopular. However, we believe it is essential that local drivers are not placed at a financial disadvantage due to timing differences between airport fee reviews and licensing tariff cycles. We kindly ask that the Committee considers amending the tariff card wording at the next Fare Review, ensuring equity for Renfrewshire’s taxi trade. Yours sincerely, Ruth Cousin Surface Access and Ancillaries Director AGS Airports