Overview

• Industry reports say the chancellor plans to apply the full 20% VAT to taxi and private-hire fares, with an announcement expected at the 26 November Budget.
• The measure is framed as raising roughly £750m a year as ministers seek to address an estimated £50bn shortfall in the public finances.
• Many operators outside London currently do not charge VAT because most drivers are self-employed below the £90,000 threshold, so the change would standardise treatment across the sector.
• Campaign groups warn the policy would hit rural users and disabled passengers hardest, with polling suggesting about seven in ten voters oppose the move.
• The Treasury says it is reviewing consultation feedback and will publish a detailed response soon, as industry warns NHS patient-transport spending of about £460m a year would face extra pressure.