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Bolt warns Chancellor it has shelved £200m of investment over Uber VAT ruling

The ride-hailing firm has warned the Chancellor it has put £200m of investment in the º£½ÇÊÓÆµ on hold amid uncertainty over a possible 20 per cent VAT hike for taxi firms

Bolt(Image: Bolt)

Ride-hailing service Bolt has issued a dire caution to Rachel Reeves regarding the government's lack of action on a threatened 20 per cent VAT rise for taxi operators.

Understandably, City AM has learned that the mobility company has alerted the Chancellor in writing that it has been withholding £200m of º£½ÇÊÓÆµ investment over the past three years due to ministerial indecision around the so-called "taxi tax," as reported by .

Cab, minicab and private hire businesses have faced uncertainty in recent times concerning the potential imposition of an added 20 per cent VAT charge on journeys.

This proposed increase arises from legal decisions which determined that taxi companies, rather than individual drivers, are accountable for establishing contracts with customers.

Detractors of the hike have cautioned that it could lead to inflated travel costs for consumers and reduced income for drivers. Meanwhile, Uber is advocating for "consistency" across the industry.

The San Francisco-based ride-hailing leader had to up its prices after another court decision deemed its London operations could attract VAT.

Chancellor Rachel Reeves (Image: PA)

Uber is awaiting a new judgment on contracting practices at a Supreme Court hearing set for July, a verdict which could determine whether VAT will affect private-hire services beyond the capital.

Bolt's correspondence also reportedly highlights that, aside from investment concerns, the forthcoming Uber decision may render private hire services less affordable and harder to access.