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Posted on the 9th June 2025 in PHTM News
WOLVERHAMPTON TAXI LICENCE FEES SET TO SOAR IN FIRST HIKE IN OVER A DECADE
Thousands of taxi and private hire drivers and operators licensed by City of Wolverhampton Council are facing their first fee increase in more than a decade, with some charges set to rise by up to two-thirds.
The proposed hike, intended to cover mounting compliance and administration costs, will be decided by the council's regulatory committee on Wednesday, June 11.
Wolverhampton's licensing department handles approximately 50,000 drivers, the vast majority of whom operate outside the city.
Under the new proposals, a one-year renewal licence for private hire vehicle operators with four vehicles or fewer could jump from £150 to £250, marking a 66% increase. New hackney carriage and private hire drivers will see their annual licence fee rise by £20 to £69, while a three-year licence for new drivers will increase from £98 to £128.
Yearly fees for vehicles are also set to climb from £125 to £175.
A report presented to the committee stated that "economies of scale" from Wolverhampton's "significant growth over the last decade from an authority with 1,500 to 50k drivers" had previously kept fees low. However, increased compliance demands and the need for additional checks mean fees are "required to increase for the first time since 2011."
The authority, which also undertakes taxi licensing for South Staffordshire Council, had to use £493k of reserve funding on the service between 2024 and 2025.
"This fee increase is anticipated to prevent any overspend this year," the report said.
"Additional resource requirements to tackle the backlog of applications and higher than usual internal recharges applied in March 2025 have meant that the fees require recalculation," it added.
Despite the increases, the report maintains that the revised fees still represent "excellent value for money," noting that 2011 fees, when adjusted for inflation, were higher.
The council revealed last year that a staggering 96% of the licences it issues are for drivers residing outside the city.
Subject to consultation responses, the new charges for driver licences would take effect immediately for operators, and for vehicle licences from July 10.
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