Taxi fares in Aberdeen are set to increase by 5% after councillors agreed a larger rise than originally indicated following concerns from the city’s taxi trade about rising operating costs.
Aberdeen City Council’s Licensing Committee considered its 2026 taxi fare review on Tuesday, 1 September.
The council’s calculations had indicated an increase of around 1.56% in the cost of operating a taxi, with a proposed fare increase of approximately 2% being considered as guidance.
However, representatives from the local taxi trade challenged some of the figures used to reach that conclusion.
Russell McLeod of Rainbow City Taxis and Chris Douglas of Aberdeen Taxis addressed councillors as part of the committee’s consideration of the fare review.
Mr McLeod presented invoices showing how some real-world costs faced by his fleet differed from figures contained within the council’s calculations.
One example involved tyres, where evidence presented by the operator indicated an increase of around 9%, compared with a reduction of approximately 1.9% suggested by the council’s formula.
The trade also questioned figures relating to servicing and replacement parts.
A key argument was that calculations based on ordinary motoring costs may not accurately represent vehicles being operated intensively as taxis.
Mr McLeod told councillors that an Aberdeen taxi could cover almost twice the annual mileage of a normal car, resulting in considerably greater servicing, tyre and replacement-part requirements.
Members ultimately agreed that the fare review needed to balance the financial pressures faced by drivers with the cost passengers are being asked to pay.
A 5% increase was proposed during the meeting and subsequently approved unanimously by the committee.
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The decision puts Aberdeen’s increase in line with several other Scottish authorities that have recently considered higher taxi operating costs.
During the debate, councillors were told that Aberdeenshire, Dundee and Edinburgh had also agreed increases of around 5%.
Councillor Neil Copeland said a balance had to be found between allowing taxi drivers to make a living and ensuring fares remained affordable for passengers.
Aberdeen’s regulated taxi fares determine the maximum amount passengers can be charged for journeys covered by the council’s tariff.
The city has faced wider debate about taxi availability in recent years, including concerns over the number of vehicles available during busy periods and discussions surrounding the arrival of Uber.
The Street Knowledge Test required by Aberdeen has also been the subject of continuing disagreement between sections of the existing taxi trade, prospective drivers and ride-hailing operators.
Following today’s decision, Mr McLeod said the industry would have to see whether the 5% increase proved sufficient over the coming year, although he acknowledged it was preferable to the smaller increase initially indicated.
Mr Douglas said any increase helping drivers absorb rising operating costs would be welcomed.
The revised taxi fares are expected to come into force in November.
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Sources
Aberdeen City Council – Licensing Committee, 1 September 2026
