The Chancellor has been warned not to introduce an increase for VAT and dozens of taxi firms are warning Rachel Reeves thousands of jobs could be at risk.
The Chancellor has received a letter from 59 national and regional taxi operators slamming the government “taxi tax.”
There has been reports that Reeves is planning to introduce 20% VAT hike on private hire vehicles at the upcoming Autumn Budget.
The businesses have called for a meeting with the Chancellor to come to a “fair and sustainable” agreement.
Taxi and private hire companies outside of London do not charge VAT on journeys as they are self-employed contractors, who are warning that hundreds of small to medium sized firms will collapse.
The companies are also warning local and the night-time economies are at risk and those who live in rural communities, the elderly, disabled and families will be affected, especially those who live in Wales, the South West and the East of England.
Private hire company Veezu said more than 50% of their journey are mainly for “essential purposes” such as education, healthcare and those commuting to work and a small amount is for leisure trips.
There is around 265,000 licensed private hire drivers across the UK and every day there is literally millions of journeys being made.
Nathan Bowles, CEO of Veezue, said, “PHVs keep Britain moving, connecting communities that rely on us for essential journeys, and a 20% VAT hike would hit the elderly, disabled, and rural passengers hardest.
“The open letter is a united call from operators across the UK urging the Government to confirm that PHVs will not be subject to a 20 per cent VAT rate.”
“Businesses cannot plan, invest or grow while uncertainty remains, and every month without reassurance contributes to the slow erosion of one of Britain’s most essential transport services,” he added.
Leave a Comment