Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment she has made of the potential merits of introducing mandatory fare meters in private hire vehicles.

Licensing authorities have the power to set maximum taxi fares for journeys within their area. Regulated fares provide an important element of customer protection in the rank and hail market where passengers do not have a choice over which vehicle they hire. A uniform set of tariffs enables taxi meters to be used to ensure taxi fares are accurately calculated.

Licensing authorities have no power to set fares for private hire vehicles (PHVs). Fares for PHVs, which must be pre-booked with a licensed operator, are set by the PHV operator. The competitive pre-booked market allows PHV operators to compete on price as well as other factors such as quality of service.

Apart from in London, meters can be fitted to PHVs and these would need to reflect the relevant PHV operator’s tariff. As different PHV operator tariffs may vary this could have the effect of restricting the range of operators which drivers could work with. Mandating the fitting of meters in PHVs would reduce the flexibility in the PHV sector and potentially affect the availability of vehicles for passengers and the way in which drivers can work to maximise their earnings.