The British government has announced an extension of its subsidy for electrified taxis until April 2025, albeit with a reduction in the subsidy amount from £7,500 to £6,000 per vehicle – equivalent to a decrease from around €8,760 to €7,000.
Since its inception in 2017, the UK government has allocated over £50 million (just over €58 million) to support the purchase of more than 9,000 electrified taxis through the Plug-in Taxi Grant programme. The primary criterion for the subsidy is that taxis must be capable of operating purely on electric power. Plug-in hybrids are also eligible for the subsidy.
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As part of the programme extension, the maximum grant per vehicle will now be reduced from £7,500 to £6,000. The Office for Zero Emission Vehicles (OZEV) is concurrently updating the eligibility requirements. UK Minister for Technology and Decarbonisation, Anthony Browne, remarked, “Taxis are a vital part of our transport network, so it’s great that we are supporting our iconic taxi industry with further funding to help decarbonise their vehicles, as part of the Government’s plan to support drivers.”
Official figures indicate that more than half of London’s licensed taxis – approximately 8,299 vehicles – are now electric. This marks a 24% increase in the number of electric taxis in the past year alone. The British government had previously terminated its subsidy programme for privately purchased electric cars in mid-2022, while continuing the subsidy programme for electric delivery vans, electric taxis, and electric motorbikes.
The Licensed Taxi Driver Association has welcomed the extension, with General Secretary Steve McNamara stating, “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.”
