Government announces cut to Plug-in Taxi grant – despite confirming extension

Subsidy scheme for electric taxis will now last until April of 2025.

British cabbies will be given a further chance to go green after the Government announced an extension to the Plug-in Taxi Grant.

However, ministers say that taxi drivers will now only be able to claim back £6,000 from the cost of a new electric cab, compared to the previous figure of £7,500.

The scheme, launched back in 2017, had been due to expire but ministers have now extended it until April 5, 2025.

Since its introduction the grant has provided more than £50m to support the purchase of over 9,000 zero emission cabs.

The government says this has “supported skilled British jobs in the car industry” and “helped to decarbonise the taxi fleet”.

In London alone, 54% of all licensed taxis are now electric – equating to 8,299 vehicles – a rise of 24% in the last year.

Confirming the decision to expand the scheme, technology and decarbonisation minister, Anthony Browne said: “Taxis are a vital part of our transport network, so it’s great to be supporting our iconic black cab industry with further funding to help decarbonise their vehicles, part of this Government’s plan to back drivers.

“From Redbridge to White City, it’s now more likely than ever that your black cab will be green, with the majority of taxis sold in London now being electric.

“The grant has been a huge success so far, and I’m pleased our funding will be continued for another year to help cabbies make the switch to new vehicles.”

Despite being a huge success in London, the grant still has some way to go if it is to reach the same levels nationally.

Across the country, just 12% of licensed taxis have zero emissions capabilities.

One of the biggest manufacturers of electric taxis is London EV Company (LEVC), whose managing director Chris Allen, welcomed the latest announcement.

He said “Today’s announcement is a positive signal to the taxi trade that the Government remains committed to supporting the electrification of our iconic industry, and provides important support for drivers for another 12 months.

“LEVC is continually innovating to deliver the latest in clean, accessible mobility solutions. We will continue to work with Government to deliver for drivers and passengers across the UK.”

— LEVC (@LondonEVCompany) February 21, 2024

Steve McNamara, general secretary of the Licensed Taxi Drivers Association added: “London’s licensed taxi drivers are proud to be leading the way in adopting zero emission, electric taxis. Our members have invested record sums in these clean, green vehicles and the PiTG has played a vital role in making this possible.

“Today’s announcement provides the certainty and support hard working taxi drivers and fleets need to continue investing in the future of this important sector and delivering the high-quality, accessible service London’s iconic black cabs are known for, all whilst helping to clean up our air and working towards net zero.”