Story perspectives

UK Government Targets Online Minicabs with New Tax

1/2/2026

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Summary

Story summary

The UK government will impose higher taxes on online minicab firms to curb misuse of the Tour Operators Margin Scheme, a move celebrated by black cab drivers.
Chancellor Rachel Reeves said the change aims to protect traditional cab drivers from unfair competition.
The Tour Operators Margin Scheme previously allowed online firms to pay reduced VAT, provoking complaints from licensed taxi drivers.
Uber's UK general manager, Andrew Brem, warned the reform could raise fares for passengers and reduce driver work as living costs rise.
The government expects the measure to generate £700 million annually.

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Story summary

The UK government will impose higher taxes on online minicab firms to curb misuse of the Tour Operators Margin Scheme, a move celebrated by black cab drivers.
Chancellor Rachel Reeves said the change aims to protect traditional cab drivers from unfair competition.
The Tour Operators Margin Scheme previously allowed online firms to pay reduced VAT, provoking complaints from licensed taxi drivers.
Uber's UK general manager, Andrew Brem, warned the reform could raise fares for passengers and reduce driver work as living costs rise.
The government expects the measure to generate £700 million annually.