Taxi drivers face first licence fee hike in years
Getty ImagesThousands of taxi drivers and operators are facing their first licence fee increase in more than a decade as a council deals with a backlog of applications.
City of Wolverhampton Council is proposing a rise of up to two thirds in the sums to be paid for new or renewed licences, to cover compliance and admin costs.
The authority's licensing department looks after about 50,000 drivers according to documents, with the vast majority operating outside the city.
Its regulatory committee is meeting on Wednesday to decide on the increase, which would affect licenses issued in both south Staffordshire and Wolverhampton.
Under the plans, private hire vehicle operators with four vehicles or fewer could see renewal fees go up from £150 to £250 for a one-year licence - a rise of 66%.
There would be a £20 rise to £69 in the sum to be paid by new hackney carriage and private hire drivers for a year's licence.
A three-year licence for a new driver would increase from £98 to £128, while yearly fees paid for a vehicle are set to go from £125 to £175.
'Excellent value'
A report to the committee stated "economies of scale" reflecting Wolverhampton's "significant growth over the last decade from an authority with 1,500 to 50k drivers" had previously kept fees low.
However, increased compliance and the need for additional checks meant they were "required to increase for the first time since 2011".
The authority, which also undertakes taxi licensing for South Staffordshire Council, had to use £493k of reserve funding on the service between 2024 and 2025.
"This fee increase is anticipated to prevent any overspend this year," the report said.
"Additional resource requirements to tackle the backlog of applications and higher than usual internal recharges applied in March 2025 have meant that the fees require recalculation," it added.
The report stated the revised fees still represented "excellent value for money" and pointed out that sums in 2011, adjusted for inflation, were higher.
Subject to consultation responses, the charges for driver licences would apply immediately for operators, and to vehicle licenses from 10 July.
The council revealed last year 96% of licences it had issued were for drivers from outside the city.