An electric taxi being charged. Alamy stock photo via PAAn electric taxi being charged. Alamy stock photo via PA


Grant for new electric taxis is extended – but will be cut by a fifth

  • Plug-in taxi grant extended until April 2025
  • But the rate will drop from £7,500 to £6,000 per vehicle
  • More than £50m has been given in grants so far
  • Over half of London’s taxis are now zero-emission

Time 3:29 pm, February 21, 2024

Grants for new electric taxis are being slashed by a fifth, the Department for Transport announced today.

The plug-in taxi grant was introduced in 2017 and is being extended to April 2025 – but the current rate of £7,500 will drop to £6,000 during the next financial year.

The DfT said the cut was part of government policy to ‘target incentives where they have the most impact whilst delivering value for money for the taxpayer’.

It added that was why a lower grant level was to be brought in to support the market as it matured further.

So far, it has provided more than £50m to support buying over 9,000 zero-emission cabs. Drivers don’t apply for the grant – the discount is included in the purchase price from the vehicle seller.

There were fears the scheme wouldn’t be extended beyond the current financial year but they have been allayed – albeit with a sting in the tail.

Earlier this month, Steve McNamara, general secretary of the Licensed Taxi Drivers’ Association, said it was ‘essential’ that the grants continued, as stopping them would take the cost of a plug-in hybrid electric LEVC TX taxi bought on finance to as much as £110,000.

Technology and decarbonisation minister Anthony Browne said: ‘Taxis are a vital part of our transport network, so it’s great to be supporting our iconic black cab industry with further funding to help decarbonise their vehicles – part of this government’s plan to back drivers.

‘From Redbridge to White City, it’s now more likely than ever that your black cab will be green, with the majority of taxis sold in London now being electric.

‘The grant has been a huge success so far, and I’m pleased our funding will be continued for another year to help cabbies make the switch to new vehicles.’

Since 2018, taxis licensed in London for the first time have to be able to travel minimum distances powered just by electric batteries.

Transport for London figures show that 56% of the 14,800 cabs licensed in the capital are in that category.

LEVC managing director Chris Allen said: ‘Today’s announcement is a positive signal to the taxi trade that the government remains committed to supporting the electrification of our iconic industry, and provides important support for drivers for another 12 months.

‘LEVC is continually innovating to deliver the latest in clean, accessible mobility solutions.

‘We will continue to work with the government to deliver for drivers and passengers across the UK.’

McNamara added: ‘London’s licensed taxi drivers are proud to be leading the way in adopting zero-emission electric taxis.

‘Our members have invested record sums in these clean, green vehicles and the plug-in taxi grant has played a vital role in making this possible.

‘Today’s announcement provides the certainty and support hard-working taxi drivers and fleets need to continue investing in the future of this important sector, delivering the high-quality, accessible service London’s iconic black cabs are known for, all while helping to clean up our air and working towards net zero.’

Main image: Alamy/PA

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