- Written by: Michael Kill, NTIA, CEO
- Full Nightlife Article Newsletter series.
Let’s be honest: if you’re out late at night in the UK, public transport probably isn’t getting you home. Across towns and cities, services typically wind down just as the late night-time economy is coming to life.
Trains stop running. Buses become few and far between. And yet, every weekend, millions of people still head out to bars, clubs, and venues. So how do they get home safely in the early hours?
They rely on private hire vehicles (PHVs) and minicabs. And now, the government wants to add a 20% VAT levy on those journeys a “Taxi Tax” on the only bit of transport infrastructure that’s still doing its job.
Right now, public transport like trains and buses is VAT-exempt. Yet when it clocks off early, it’s minicabs and private hire vehicles that step in to fill the gap. They keep people safe. They keep venues open. They keep staff safe as they move to and from work.
Let’s remember: 38% of Brits use a PHV or minicab at least once a month, and the most common reason is to get to or from a night out. But if VAT is added, fares will rise.
For many, that will be a dealbreaker. They may choose not to go out at all or to go home earlier. Polling already shows that more than a third of people would be less likely to use PHVs if prices went up. That means fewer people heading out, spending money, and supporting their local venues.
And with pubs, bars, and clubs already grappling with soaring energy bills, business rates, and staffing costs, a drop in footfall could be the final straw.
Women in particular have safety concerns when travelling at night. A survey carried out on behalf of the NTIA by Obsurvant of over 2,500 18–30-year-olds found that 31% of women stated their primary mode of transport at night is taxis, significantly higher than men (19%). This could be a factor in higher transportation costs disproportionately impacting women.
Leading women’s safety group The Survivors Trust has already sounded the alarm, warning that millions will be forced to pay more to get home safely and potentially take less safe options. And for hospitality staff working late into the night, PHVs aren’t a convenience they’re often the only safe, practical way to get home.
This proposed tax punishes the very services holding up the night-time economy. It targets the only late-night transport that works, no matter where you live in the UK.
The Stop the Taxi Tax campaign supported by over 100 local PHV operators, charities, and groups, including the NTIA is urging the government to think again.
If we care about safety, about jobs, about fairness, this tax must be scrapped. Because until our public transport can carry the weight, we must protect the services that already are.
