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Bump up taxes for Uber, think thank tells the Mayor

The Mayor of London should consider forcing Uber to pay more tax and imposed a maximum 12 hour working day for drivers, according to recommendations from a new report by the Policy Exchange’s Capital City Foundation think tank.

The report, which looks at ways that the capital’s taxi industry can adapt in the face of competition from ride-sharing apps, also claims that black cab drivers could be doing more to ‘out-compete’ Uber through cheaper fares and more convenient services.

Authored by LBC host Nick Ferrari, the report says that, while Sadiq Khan has the powers to limit Uber’s reach and dominance through taxation and limitations on shift patterns, the black cab industry should consider measures such as reducing late night fares and taking payments via app to match changing consumer habits.

It also criticised an ‘ultra-conservative minority’ of drivers who have damaged the industry’s reputation.

Uber’s licence to operate in the capital is up for renewal next May, and the report posits that the Mayor’s office could leverage this impending deadline to introduce more measures to limit the amount of hours Uber drivers can work and to force the US giant to pay a fair share of tax.

According to its latest accounts, the ride-sharing firm paid just £411k in tax last year, despite doubling its turnover to £23.3m.

Andrew Gilligan, head of the Capital City Foundation said that, while the rise of ride-sharing services had brought both benefits and costs, negatives such as congestion were more visible than the positives.

He commented: “We must tackle those costs, and Uber’s principal unfair advantage, of paying less than the normal UK tax; 
a completely indefensible position, given its total dependence on roads provided by the UK taxpayer.

“It has chosen to pay more tax last year than it did before, but the payment of tax should not be a matter of corporate choice.”

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