Croydon’s Conservative Mayor, Jason Perry, has condemned Labour’s reported plans to impose VAT on taxi and private-hire journeys – branding it “another attack on hardworking people who keep our city moving.”
The proposal, reportedly under Treasury consultation, could add a 20% VAT charge to cab fares – increasing the cost of a typical journey by £2–£3. Critics have warned that the move would break Labour’s election promise not to raise VAT and would hit disabled and rural passengers hardest.
“Taxi and private-hire drivers work long, unsociable hours to serve our residents, get people home safely, and support local businesses. They’ve already been punished by Sadiq Khan’s ULEZ charges – and now Labour wants to hit them again with a Taxi Tax. Enough is enough.
In Croydon, thousands rely on taxis for hospital visits, night shifts, and journeys where public transport simply doesn’t reach. Labour’s latest plan will raise prices for passengers and squeeze drivers already struggling with rising fuel, insurance, and vehicle costs.
This is a tone-deaf policy from a Labour Party that simply doesn’t understand the real world. Instead of backing small businesses and drivers, they’re adding more red tape, higher costs, and fewer jobs. Croydon needs practical support – not punishment.
Croydon’s drivers deserve respect and support, not yet another Labour tax raid. I’ll stand with them every step of the way. Whether it’s drivers making deliveries, tradespeople serving customers, or families trying to get around – vehicles are essential for work and daily life. I’ll always stand up for those who depend on them.
Croydon’s recovery depends on supporting those who keep our borough moving – from small business owners to self-employed drivers. Whilst Labour taxes and targets them, I’ll continue to back them with practical action, fairness, and common sense.”
– Jason Perry, Conservative Mayor of Croydon
