
Taxi operators in Gloucester are set to pay the price for a long-standing "financial fiasco" at the city council. Following a recent review, officials discovered a 28% shortfall in licensing income, a discrepancy blamed on the chaotic state of the council’s accounts following a 2021 cyberattack.
The digital breach forced bosses to use manual accounting for three years, leading to inaccurate budgets and a £15.5m government bailout.
To bridge the gap, the council plans to hike licensing fees by 15% annually for the next three years. While the council is legally barred from making a profit on these charges, the current fees no longer cover the basic costs of issuing licences.
Under the new plans, companies with more than 31 vehicles will see fees increase from £1,530 to £1,759 for a one-year operator licence or from £6,120 to £7,038 for five years. A three-year driver's licence will jump from £251 to £289, while renewals will rise from £210 to £241.
Costs for mandatory services, including the Knowledge Test and safeguarding training, are also set to increase.
The trade has expressed deep concern over the timing of the hikes. Elena Vlad, from Associated Taxis, noted that a 15% increase is a "significant jump" for those already struggling with high fuel and insurance costs.
She highlighted the human impact of the decision, stating: "Most taxi drivers are self-employed and working long hours just to keep their businesses running. Any increase in licensing fees inevitably puts more pressure on the trade and can make it harder for drivers to stay in the industry.
"We hope the council continues to work with the trade and ensures that any fee increases are fair, transparent and reflect the real costs involved."
Despite the pressure on drivers, licensing lead Darren Mountford argued that the 15% rise was "reasonable" compared to an immediate 28% increase, which he described as "massive."
By capping the hike at 15%, the council will effectively absorb the remaining 13% deficit for the next two years.
However, committee chair Cllr Tracy Millard expressed reservations about the move, stating: "I want to put it on record that I am concerned as a committee if we were to agree that we were knowingly carrying over a deficit."
The committee voted to unanimously approved the fee increases to begin on May 1, 2026, pending a 28-day public consultation.
The council has not yet revealed the total cost to taxpayers for covering the remaining funding gap.

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