More black cab drivers can go green after further funding support

By Nicky Godding

22 February 2024

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More green taxis can take to the roads thanks to the announcement of an extension to the Plug-in Taxi Grant, following its initial success.

Cab drivers will be able to keep up momentum through extended funding until 5 April 2025 at a rate of £6,000 per vehicle, providing certainty to those who are looking to make the switch to electric in the next year.

Since its introduction in 2017, the Plug-in Taxi Grant has provided more than £50 million to support the purchase of more than 9,000 zero emission cabs – supporting skilled British jobs in the car industry and helping to decarbonise the taxi fleet.

As a result of the grant driving change in industry, more than 54per cent (8,299) of London’s licensed taxis are now electric, with the number of electric taxis increasing by 24 per cent in the last year alone as more drivers use government funding.

The electric taxi market has grown rapidly since the grant’s introduction, with sales overtaking the number of diesel taxis sold in London in 2022, marking a milestone for the sector. Nationally, more than one in ten taxis are now zero emission capable.

Chris Allen, Managing Director at Coventry-based London EV Company said: "This 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."

Over the last 12 months, LEVC has met with representatives from the Department for Transport, OZEV, the Department for Business and Trade, TfL, and HM Treasury to discuss the Plug-in Taxi Grant and the unique challenges drivers face, and how best to support this vital industry to meet transport and decarbonisation needs.

Chris added: "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."

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."

By Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.