Gloucester Taxi Drivers Face Steep Fee Hikes After Council’s “Financial Fiasco” Linked to Cyberattack
Gloucester’s taxi operators are bracing for significant annual fee increases, a direct consequence of a long-standing financial mismanagement at the city council. A recent internal review revealed a stark 28% shortfall in licensing income, a discrepancy officials directly attribute to the chaotic state of the council’s accounts following a major cyberattack in 2021.
The digital breach forced the council to abandon its digital accounting systems for a protracted three-year period, resorting to manual processes. This breakdown in financial oversight led to chronically inaccurate budgets and ultimately necessitated a £15.5 million government bailout to stabilize the authority’s finances.
Breaking Down the Proposed Fee Increases
To address the structural deficit in its licensing fund, the council has approved a plan to increase fees by 15% annually for the next three years. While legislation prohibits the council from generating a profit from licensing, the current fees have fallen below the essential cost of administering licences, creating an unsustainable gap.
Under the new structure, the financial impact will be substantial. For companies operating more than 31 vehicles, the fee for a one-year operator licence will rise from £1,530 to £1,759, and the five-year licence will jump from £6,120 to £7,038.  Individually, a three-year driver’s licence will increase from £251 to £289, with renewal fees climbing from £210 to £241. Costs for mandatory services, including the Knowledge Test and safeguarding training, are also scheduled to rise.
The Human Cost on the Front Line
The timing of these increases has drawn sharp criticism from the trade, which is already grappling with high operational costs. Elena Vlad of Associated Taxis described the 15% annual rise as a “significant jump” for an industry under immense pressure from soaring fuel and insurance premiums.
“Most taxi drivers are self-employed and working long hours just to keep their businesses running,” Vlad stated. She emphasized the real-world consequence: “Any increase in licensing fees inevitably puts more pressure on the trade and can make it harder for drivers to stay in the industry. We hope the council continues to work with the trade and ensures that any fee increases are fair, transparent and reflect the real costs involved.”
Council’s Rationale and Internal Dissent
Despite the concerns, Darren Mountford, the council’s licensing lead, defended the 15% figure as “reasonable.” He contrasted it with the alternative of an immediate 28% hike, which he termed “massive.” By phasing the increase, the council will absorb the remaining 13% of the deficit for the next two years, spreading the financial pain.
However, this approach did not sit well with everyone on the licensing committee. Committee Chair Cllr Tracy Millard voiced explicit reservations, stating: “I want to put it on record that I am concerned as a committee if we were to agree that we were knowingly carrying over a deficit.” Her comment highlights the tension between immediate fiscal repair and long-term financial responsibility.
Path to Implementation and Unanswered Questions
The licensing committee voted unanimously to approve the fee increases, which are slated to take effect on May 1, 2026. This implementation is contingent on a 28-day public consultation period, a standard procedural
Image Credit: www.phtm.co.uk
