Merseyside, UK – March 14, 2025
In a bold move to safeguard the interests of drivers and passengers across the country, Delta Taxis (Merseyside) has initiated a high-profile crowdfunding campaign titled “Say NO to VAT on taxi fares!” on the CrowdJustice platform. The legal challenge comes amid fierce battles between the UK’s traditional private hire vehicle operators and multinational giant Uber Britannia Limited.
A David vs. Goliath Legal Battle
Since early 2022, an intense legal battle has simmered over the pricing of taxi fares outside London. At the heart of the dispute lies a pivotal question: should VAT be applied to taxi fares? In a case that could have far-reaching implications, a Court of Appeal ruling – championed by Delta Taxis alongside fellow operator Veezu – successfully overturned a previous High Court decision. That ruling had set a precedent whereby operators could be forced to charge VAT at 20% for journeys outside London. However, Uber’s decision to escalate the matter to the Supreme Court has reignited fears that a loss could force a dramatic increase in fares.
Potential Industry Impact
If Uber wins its appeal, the repercussions could be significant:
- Fare Increases: Customers may see fare hikes of at least 20% overnight, as operators would be compelled to add VAT to each ride.
- Vulnerable Passengers Affected: For many, especially in rural areas where private hire vehicles (PHVs) serve as the only affordable transport option, this could mean losing access to essential mobility.
- Small Operators at Risk: The administrative and financial burden of managing VAT could force smaller, family-run businesses out of the market, consolidating the sector further under corporate giants.
- Driver Exodus: Rising costs and reduced demand could push drivers to abandon the industry, diminishing service quality and availability.
The Stakes and the Call for Support
Delta Taxis argues that the imposition of VAT will not only burden customers with higher fares but also jeopardize the survival of small and medium-sized operators who have served their communities for decades. “Our legal battle is not just about numbers; it’s about preserving a vital service that many people rely on every day,” a spokesperson for Delta Taxis said.
The crowdfunding campaign aims to raise a stretch target of £500,000. Although only £145 has been pledged so far from just nine contributions, the campaign underscores the urgent need for collective support from industry stakeholders, passengers, and the wider community. With only 28 days remaining on the campaign, Delta Taxis is urging anyone affected by potential fare hikes—or who believes in fair transport for all—to contribute to the fighting fund.
A Wider Industry Issue
This legal challenge is more than just an isolated dispute. It represents a critical juncture for the UK’s taxi and private hire industry, which has long operated under an interpretation of licensing laws dating back to 1976. Historically, the industry has enjoyed an arrangement where VAT was not applied, keeping fares affordable and operations sustainable for small operators. A Supreme Court decision in favour of Uber could upend decades of established practice and reshape the competitive landscape, potentially favoring multinational companies over local operators.
What’s Next?
As the case heads to the Supreme Court, the future of taxi fares—and indeed, the fate of many small operators—hangs in the balance. Delta Taxis’ campaign on CrowdJustice invites support not only in financial contributions but also in raising public awareness about the potential impact on everyday commuters and local businesses.
Supporters can follow updates and contribute to the campaign on the CrowdJustice page under the “Say NO to VAT on taxi fares!” banner. With legal costs mounting and the threat of an industry-wide overhaul looming, every contribution, regardless of size, is seen as a crucial stand against what many view as an unfair imposition that could drive up costs for all.
If you would like to contribute go to CrowdJustice.
