Overview

• Industry sources say the chancellor is preparing to announce a blanket 20% VAT on taxi and private‑hire trips on 26 November, though the Treasury has not confirmed the move.
• The measure is reported to raise about £750m a year, with the push linked to a wider fiscal gap after borrowing overshot forecasts by £11.4bn between April and August.
• Many journeys outside London currently avoid VAT because drivers operate below the £90,000 threshold, a position effectively preserved by a Supreme Court ruling in July.
• Ministers say they are considering consultation feedback on VAT treatment, with exchequer secretary Dan Tomlinson indicating a detailed response will be published soon and that tax decisions are taken at fiscal events.
• Opponents warn of higher costs for rural residents and disabled passengers, cite polling showing about 70% opposition, and flag potential knock‑on pressures including the NHS’s £460m yearly spend on patient transport.