North Yorkshire Council is proposing a 5% increase in maximum taxi fares to help drivers manage rising fuel costs, with a final decision expected on 14 July 2026.
The proposed changes follow an Executive meeting held on 12 May 2026, where officials acknowledged the financial pressure facing the trade. Since the conflict in Iran began on 28 February 2026, diesel prices have risen sharply, impacting the daily operations of local taxi services.
Under the new proposals, daytime fares for hackney carriage vehicles—those that can be hailed on the street or used at taxi ranks—would rise from £2.22 to £2.33 per mile. Waiting time charges are also set to increase from £20.23 to £21.24 per hour. These changes do not apply to private hire vehicles, which set their own rates.
The council is now entering a period of public consultation. Residents and members of the taxi trade have at least 14 days to submit objections after public notices are published. The move is designed to support the sustainability of the sector, which some drivers say now faces annual operating costs exceeding £10,000, including fuel and insurance expenses.
Councillor Richard Foster, the executive member for managing our environment (whose portfolio includes licensing), noted that the sector provides a vital boost to the economy and helps keep communities safe. If no objections are received during the consultation, the new fare structure will move forward for final approval in July.
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