28/05/2021
The streets of Greater Manchester have long been synonymous with their bustling taxi trade, a vital artery of the city's transport network. However, recent months have seen this essential service embroiled in unprecedented turmoil, leading many, including Mayor Andy Burnham, to declare the entire system broken. From driver strikes over pay to the contentious issue of out-of-area licensing and looming environmental regulations, the challenges facing Manchester's cabbies are multifaceted and deeply rooted. This article delves into the heart of these issues, exploring the causes of the current discontent and examining the ambitious plans put forth to steer the trade towards a more sustainable and equitable future.
For anyone relying on taxis in Greater Manchester, or indeed for the drivers themselves, the sentiment that something is profoundly wrong has become palpable. A series of events, from significant protests to policy announcements, has underscored the urgent need for comprehensive reform. The question on everyone's mind is not just how dire the situation truly is, but whether the proposed solutions can genuinely mend a system that many feel is on the brink of collapse.
The Core of the Crisis: What's 'Broken'?
The description of Greater Manchester's taxi licensing system as 'broken' is not mere hyperbole; it reflects a confluence of pressures that have pushed drivers and regulators to their limits. Understanding these distinct yet interconnected challenges is crucial to appreciating the scale of the problem.
Emissions Regulations and the Reprieve for Hackney Cabs
One of the most immediate threats to the black cab trade surfaced with the impending 2026 emissions rules. These regulations, part of Greater Manchester's wider Clean Air Plan, stipulated that older, more polluting vehicles would no longer be permitted to operate. For the region's 1,350 Hackney Carriage drivers, this presented a colossal financial burden. The cost of a new, compliant cab, estimated at £95,000 to £100,000, coupled with a severely limited second-hand market, meant that meeting the deadline of December 31st this year was, as drivers warned, 'physically could not be done'. The prospect of hundreds of iconic black cabs disappearing from the roads on New Year's Eve sent shockwaves through the community, highlighting the precarious balance between environmental aspirations and economic realities for the trade.
The Gig Economy Struggle: Driver Pay and Commission
Beyond the traditional black cabs, the private hire sector, dominated by apps like Uber, Bolt, and Addison Lee, faces its own set of critical issues. A significant 24-hour strike in early May by drivers from the Independent Workers Union of Great Britain (IWGB) laid bare deep-seated grievances over pay rates and the hefty commission taken by companies. Uber, for instance, admitted that commission can be as high as 40% for some journeys, although it averages 20-30% weekly. This substantial deduction leaves many drivers struggling to make ends meet, especially when factoring in the rising cost of living, insurance, road tax, and vehicle maintenance.
Drivers like Tesfit Kidane, who joined Uber in December 2023, expressed profound disillusionment, describing it as the 'worst job I've ever had' and contemplating a return to warehouse work. Vahid, a seasoned cabbie of seven years, similarly considered quitting Uber, lamenting that wages were 'half compared to other fares in Manchester'. These testimonials paint a stark picture of financial strain and a growing sense of exploitation within the gig economy model, where drivers bear significant operational costs while their net earnings diminish.
The Out-of-Area Conundrum: A Regulatory Maze
Perhaps the most contentious issue, and one central to Mayor Burnham's reform efforts, is out-of-area working. This practice involves drivers obtaining a taxi licence from one council, often where licensing requirements are perceived as less stringent or easier to acquire, and then operating primarily in another area. In Greater Manchester, this has become a widespread phenomenon, with more than four-in-ten private hire taxis licensed outside the region's 10 boroughs. Nationally, the scale is even more striking, with 11% of all minicabs registered in Wolverhampton alone.
The mayor argues that this proliferation of out-of-area licensed vehicles severely compromises safety standards and local enforcement. When a driver is licensed by a distant authority, local councils in Greater Manchester find it significantly harder to monitor their conduct, address complaints, or ensure compliance with local regulations. This regulatory loophole creates an uneven playing field for locally licensed drivers and raises legitimate concerns about passenger safety, making it a critical aspect of the 'broken' system.
Andy Burnham's Blueprint for Reform: 'Backing Our Taxis'
Recognising the severity of the situation, Mayor Andy Burnham launched his 'backing our taxis' campaign in mid-April, outlining a comprehensive strategy to overhaul Greater Manchester's taxi licensing system. The plan is ambitious, aiming to address both immediate crises and long-standing structural issues.
Immediate Relief: The Emissions Extension
One of the campaign's first and most tangible successes was the confirmation of an extra year for Hackney Carriage drivers to upgrade their vehicles to meet the Clean Air Plan's emissions standards. This crucial reprieve means drivers now have until the end of 2026, rather than 2025, to make the necessary investments. This decision, pending approval by individual councils' licensing committees, alleviated immediate pressure on black cab drivers and demonstrated a willingness to listen to the trade's practical concerns.
Tackling Out-of-Area Working: A Call for National Action
At the heart of Burnham's reform agenda is a direct plea to the government for new legislation to tackle out-of-area working. The mayor firmly believes that without national intervention, Greater Manchester risks losing control over its own taxi fleet. His concern is that if the current growth in out-of-area licences continues, the city-region will 'no longer licence the majority of our taxis', making it impossible to uphold local standards effectively. This call for a national solution underscores the systemic nature of the problem, which extends beyond Greater Manchester's borders.
Wider Appeals: Financial Support and EV Incentives
Burnham's campaign extends beyond licensing reform, advocating for broader governmental support for the taxi trade. Key requests include:
- Extending VAT exemptions on taxis specifically adapted for disabled people.
- Prolonging the plug-in taxi grant until March 2027 to encourage the adoption of electric vehicles.
- Reducing the rate of VAT on public electric vehicle charging to just 5%, making EV ownership more economically viable for drivers.
These measures aim to alleviate financial burdens on drivers, promote a greener fleet, and ensure accessibility for all passengers, aligning with both economic and environmental objectives.
Greater Manchester's Internal Efforts: Towards a Unified System
While lobbying the government for national changes, Mayor Burnham also acknowledges the need for Greater Manchester to 'raise its game' internally. A core component of his plan is to create a more unified system across the 10 boroughs. The goal is to streamline and standardise licensing processes, making it more attractive for drivers to obtain their licences locally rather than seeking easier options elsewhere. This harmonisation effort, spearheaded by Trafford Council chief executive Sara Todd, involves a 12-week 'engagement exercise' with the industry, both inside and outside Greater Manchester, running until summer. Final recommendations are expected to be unveiled in autumn, signalling a structured approach to internal reform.
Voices from the Frontline
The human cost of the 'broken' system is most acutely felt by the drivers themselves. Their daily struggles highlight the urgency of reform:
- Tesfit Kidane (Uber driver): "It’s the worst job I’ve ever had. I was working in a warehouse before. I am thinking of going back to the warehouse. The payment is not enough… We have to pay insurance and road tax. We have a family to feed from that." Tesfit's experience reflects the severe financial pressure and the difficulty of sustaining a livelihood under the current pay structures.
- Vahid (Cabbie of seven years): "The price is already half compared to other fares in Manchester. I used to work with other companies, like StreetCars, the wages with Uber are half. If they carry on, what's the point working with them? With my family and the cost of living, it’s not worth it." Vahid's testimony underscores the erosion of earnings and the difficult choice many drivers face between continuing in a challenging profession or seeking alternative employment.
- Morgan Powell (IWGB): Pointed out that drivers are "very divided" on the issue of out-of-area working, indicating the complexity and differing perspectives within the trade itself.
These personal accounts serve as a powerful reminder that the 'broken' system is not just about regulations and policies, but about the livelihoods and well-being of thousands of individuals and their families.
The Path Ahead: Unanswered Questions and Future Steps
While Mayor Burnham's plans offer a glimmer of hope, many crucial details remain to be worked out. The engagement exercise, which includes discussions with industry stakeholders, is designed to gather input that will shape the final recommendations. However, key questions persist:
- Enforcement for Out-of-Area Drivers: How will Greater Manchester's standards be enforced on drivers licensed by external authorities? Transport for Greater Manchester (TfGM) has indicated it's too early to provide specific details on this complex issue.
- Licence Cap: Will a cap on the number of private hire licences be introduced, as alluded to by the mayor? This could significantly impact market dynamics and driver availability.
The government's response has been cautious. While the Department for Transport acknowledges 'concerns about taxi and private hire vehicle licensing, including out-of-area working', and is 'considering options to improve regulation of the sector', it has not specifically addressed Greater Manchester's campaign. Their focus remains on passenger safety, highlighting the use of a national database to track licence refusals, suspensions, or revocations. This national database, introduced in 2023, is a step towards greater oversight, but does not directly tackle the core issue of cross-border enforcement.
Greater Manchester Taxi Trade: Challenges & Proposed Solutions
| Challenge | Impact on Trade/Drivers | Andy Burnham's Proposed Solution |
|---|---|---|
| New Emissions Rules (2026) | Older black cabs face obsolescence, high cost (£95-£100k) to upgrade. | Extra year to comply (until end 2026). |
| Driver Pay & Commission | Low earnings, high commission (up to 40%), financial hardship, strikes. | (No direct solution from Burnham; calls for industry engagement and dialogue). |
| Out-of-Area Working | Harder to enforce safety standards, loss of local control, market saturation. | Call for new government law; create unified GM licensing system. |
| VAT & EV Incentives | High costs for adapted taxis, lack of EV grants, high EV charging VAT. | Extend VAT exemptions; extend plug-in taxi grant until March 2027; reduce EV charging VAT to 5%. |
Frequently Asked Questions (FAQs)
Q: Why are Manchester taxi drivers striking?
A: Private hire drivers (Uber, Bolt, Addison Lee) went on strike primarily to protest low pay rates and the high commission percentages taken by the companies, which can be up to 40% for some journeys.
Q: What is "out-of-area working" and why is it an issue?
A: Out-of-area working occurs when a taxi driver obtains a licence from one council (often where it's easier to get) but operates predominantly in another area, such as Greater Manchester. This is problematic because it makes it harder for local authorities to enforce safety standards and regulate the taxi trade effectively.
Q: What is Andy Burnham's plan to fix the taxi system?
A: Mayor Andy Burnham's 'backing our taxis' campaign aims to fix the system by calling for a new government law to tackle out-of-area working, extending financial support for drivers (e.g., VAT exemptions, EV grants), and creating a more unified local licensing system across Greater Manchester.
Q: Are Hackney Cabs getting an extension for emissions rules?
A: Yes, Hackney Carriage drivers in Greater Manchester have been granted an extra year, until the end of 2026, to upgrade their vehicles to meet the new emissions standards under the Clean Air Plan. This decision is expected to be approved by individual councils' licensing committees.
Q: How much commission do companies like Uber take from drivers?
A: Uber has stated that commission can be up to 40% for some journeys, though it averages 20-30% weekly from drivers' fares.
Q: What are the next steps for the proposed reforms?
A: An 'engagement exercise' with the taxi industry is currently underway until summer. Final recommendations for the reforms are expected to be unveiled in autumn, following this consultation period.
Conclusion
Greater Manchester's taxi trade is undoubtedly at a critical juncture. The convergence of financial pressures on drivers, the complexities of out-of-area licensing, and the push for environmental upgrades has created a challenging landscape. Mayor Andy Burnham's 'backing our taxis' campaign represents a concerted effort to address these deep-seated issues, offering both immediate relief and a long-term vision for a more robust and equitable system.
While significant progress has been made, particularly with the emissions extension for Hackney Cabs, many details of the proposed reforms are still being ironed out. The success of these plans hinges not only on governmental cooperation for national legislative changes but also on the ability of Greater Manchester's authorities to forge a truly unified system that benefits both drivers and passengers. The coming months, with ongoing industry engagement and the unveiling of final recommendations, will be crucial in determining whether Manchester's 'broken' taxi system can truly be fixed, ensuring a reliable and fair service for years to come.
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