A subsidy introduced by the Department for Transport has been updated to give drivers increased support to purchase and fund their zero-emission vehicles.
The grant was originally introduced in 2017 and was due to expire in April but has now been pushed to run until 2025. The grant is worth £7,500 and has subsidised the purchase of more than 9,000 new taxis, since its introduction, of which 8,299 currently operate in London.
The new cabs can cost up to £100,000 once the costs of financing a loan are added. Licensed taxis are exempt from the ULEZ. Since 2018, all taxis licensed in London for the first time have been required to be zero emission capable.
The subsidy update is good news for those who have been fighting to retain the grant. Councillor Susan Hall has called the grant a “lifeline” for those who have to upgrade their taxi. She says that without the grant we may lose black cabs forever.
I have written to @Mark_J_Harper @transportgovuk to urge them to keep this grant going, we are at serious risk of losing the black cabs from London's streets and this cannot be allowed to happen. I implore the Government to act in order to keep the iconic black cabs on the road. pic.twitter.com/Ou2UNKeFYl
— Susan Hall AM (@Councillorsuzie) February 15, 2024
Steve McNamara, general secretary of the Licensed Taxi Drivers Association, said: “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, whilst helping to clean up our air and working towards net zero.”
