The High Court has ruled in favour of Guildford Borough Council over a dispute over taxi fares. The taxi trade had put up a robust challenge to the council by ordering a judicial review of the fare reduction proposals. The Judge noted that the council’s decision to use the data set it did to set fares was reasonable and that full costs of £17,875 should be awarded, covering the cost of the barrister that the council hired and their own legal staff. The fare proposals were initially approved in November 2016 and can finally be implemented.
There are concerns that drivers will refuse longer distance fares as they could end up running at a loss.
Fare Reduction Bad News For Everyone
A spokesperson for Guildford’s taxi drivers believes that the proposal is bad for both the taxi trade and customers as drivers will potentially be driven out of business. The Guildford Hackney Association believe that taxi drivers will go bust trying to earn a living at £1.70 per mile for anything above a two mile journey. The taxi trade believe that drivers are losing over £1 per mile as they estimate £2.92 per mile is needed to cover understated costs. By comparison, the new Guildford rate is 19% less than nearby Woking at £2.11 per mile and Farnham at £2.40 per mile. There are concerns that drivers will refuse longer distance fares as they could end up running at a loss.
Another Financial Blow For Guildford Drivers
The reduced fare issue is another blow to taxi drivers in Guildford following the recent controversy over having to change their livery to teal. As a result of these measures, there may also be some drivers who will consider working in another district.