Posted on the 12th December 2025 in PHTM News

DURHAM TAXI DRIVERS DEMAND ACCESS TO £8M UNSPENT NEWCASTLE CAZ GRANT CASH

Taxi drivers from outside the wider Tyne and Wear region are calling for a reversal of plans to close a grant scheme for cleaner vehicles, arguing they should be eligible for the remaining £8 million of government funding.

Newcastle City Council recently announced that applications for Clean Air Zone (CAZ) upgrade grants, worth up to £16,000, will close on January 30. The scheme was designed to help businesses and individuals switch high-polluting vehicles that incur the daily CAZ charge for compliant models.

Despite issuing over 1,100 grants since 2022, approximately £8 million of the original £15 million provided by the Government remains unspent.

This surplus cash is now expected to be redirected to help bus companies upgrade their fleets.

Members of the Durham Taxi & Private Hire Association are pleading for the scheme to be opened to them, having been excluded thus far.

Currently, only taxi drivers in Newcastle, Gateshead, and North Tyneside have been eligible for up to £3,500 per vehicle. Non-compliant taxis from other areas face a £12.50 per day charge to drive into Newcastle city centre.

Mike Anderson, chair of the association, highlighted the financial pressure on drivers: “If you are taking a job from Durham into Newcastle are you aren’t Euro 6 compliant, you are paying £12.50 a time.

"A lot of people have had to make arrangements to drop people off outside the CAZ area, or otherwise you are having to add £12.50 to the passenger’s bill. Either way, it makes it uncompetitive.”

Mr Anderson, who wants the grants opened to taxis in Durham, South Tyneside, Sunderland, and Northumberland, expressed concern that the residual funds would benefit “the multi-million and multi-billion pound bus companies, not to the sole traders and small companies.”

A spokesperson for Newcastle City Council defended the initial focus, stating: “Funding for taxis is targeted towards those most likely to be affected by the CAZ, including those who have no choice but to operate within the zone and those more likely to make regular journeys into the zone.” 

The council confirmed that over 600 taxi drivers have received £2.2m in grants.

Addressing the unspent money, the spokesperson concluded: “The data we have indicates that directing funding towards further improvements to the city’s bus fleet will achieve a significant improvement in air quality and help to maximise the impact of the available funding for the benefit of everyone who lives, works and spends time within the area.

"We are currently in early discussions with government and bus operators about how this funding could be used.”


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