Taxi drivers have slammed a new policy which will see cabbies 'encouraged' to buy electric cars.

Newcastle Borough Council’s draft taxi licensing policy for 2019/21 is encouraging private hire drivers to make the switch by allowing electric vehicles to be licensed up to 10 years old compared to the seven-year maximum age for petrol and diesel cabs.

And new hackney carriage applicants must buy a 'purpose-built hackney carriage' with wheelchair access or an electric vehicle which is less than three years old.

But cabbies say electric cars are currently too expensive and there are not enough charging points in the borough. Newcastle Hackney Carriage Association raised its latest concerns during a meeting at Keele Cemetery.Association secretary Murtaza Alam said: “We have a lot of concerns over this suggested taxi policy. It will badly affect the taxi trade and result in a lot of extra financial burden on drivers and business.”

Association chairman Tariq Mehmood said: “If this goes through then it will put the price of a taxi through the roof. The council is encouraging us to change from diesel vehicles to electric but there are not enough charging points.

“The cheapest electric car on the market costs around £26,000, and an electric black cab is almost £56,000.

"The cheapest electric car has a range of 168 miles per charge - and an electric car takes around two hours to charge which would really cut into an eight-hour shift.

“If this goes through, it will cost a new driver at least £30,000, including insurance, before they even start.”

The council is currently running a 12-week consultation on the policy.

The council document states: “The council encourages and promotes the purchase of fully electric or hybrid vehicles to be licensed as private hire vehicles. Where possible the council will seek to implement a number of ‘plug-in’ points around the district which will be available for vehicle proprietors to use and also to actively target funding opportunities.”

There are five 'rapid' and two 'fast' chargers in Newcastle borough - with four of them at Keele Services. A 'rapid' charger can charge a vehicle in 20 to 40 minutes.

Councillor Stephen Sweeney, cabinet member for finance and efficiency, says drivers and firms will still be allowed to use cars with diesel or petrol engines.

He said: “The council has met with the taxi trade during the 12-week consultation and offered to organise a demonstration of an electric car which was declined.

“I must stress that the use of electric vehicles as private hire vehicles and hackney carriages is a proposed new option in the draft policy – drivers and companies can continue to use cars with petrol and diesel engines. Electric cars would be licensed for longer to help with purchase costs.

“Newcastle town centre, where a significant number of taxis operate, is one of four air quality management areas declared in the borough because of high nitrogen dioxide levels which is mainly from vehicles.”

https://goo.gl/WkehVe
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 George Howarth Labour, Knowsley

(Citation: Finance (No. 3) Bill Deb, 6 December 2018

With this it will be convenient to discuss the following:

Amendment 113, in clause 58, page 41, line 16, at end insert—

‘(6) The Chancellor of the Exchequer must review the effects on the taxi and private vehicle hire sectors of the changes made to the Vehicle Excise and Registration Act 1994 by this section and lay a report of that review before the House of Commons within six months of the passing of this Act.’

This amendment would require the Chancellor of the Exchequer to review the impact of Clause 58 on the taxi and private car rental industry.

Amendment 114, in clause 58, page 41, line 16, at end insert—

‘(6) The Chancellor of the Exchequer must review the effects on levels of CO emissions and the UK’s ability to meet its fourth and fifth carbon budgets of the changes made to the Vehicle Excise and Registration Act 1994 by this section and lay a report of that review before the House of Commons within six months of the passing of this Act.’

This amendment would require the Chancellor of the Exchequer to review the impact of this measure on CO2emissions and climate change targets.

Clive Lewis Shadow Minister (Treasury)

I am pleased to be speaking—again—to our amendments relating to clause 58, on vehicle excise duty and taxis capable of zero emissions. The clause seems to rectify an obvious mistake made by the Treasury during the 2017 Budget, which saw electric vehicles fall into the luxury vehicle segment of the new VED regime for cars costing over £40,000.

VED rates are based on carbon emissions, and zero-emissions vehicles below £40,000 have a zero standard rate and a first year rate. Standard rate on zero-emissions vehicles above £40,000 is currently £310 a year for the first five years. To include electric vehicles in that policy was clearly a major oversight by the Treasury in last year’s Budget. The correction, although somewhat late in the day, is none the less welcome and, indeed, essential if we are to seriously encourage the uptake of electric vehicles, specifically taxis.