Aberdeen taxi fares are set to increase by 5% following a decision by the city’s licensing committee, a move prompted by significant pressure from the taxi industry over escalating operational costs. The increase, which will come into effect in November, follows an initial proposal for a 2% rise that was strongly contested by taxi operators.
Taxi firms advocated for a more substantial adjustment, arguing that the council’s existing fare calculation methodology did not adequately reflect the true cost of maintaining their fleets. Rainbow City Taxis chief, Russell McLeod, highlighted a disparity in the council’s calculations, stating they “didn’t know where they got that number from” and branded it “pie in the sky.”
The council’s formula, developed by consultants in 2013, considers factors such as vehicle purchases, spare parts, servicing, and fuel. For the preceding 18 months, these calculations suggested an overall cost increase of just 1.56%. This figure was partly attributed to a purported near 50% drop in costs for spare parts and service labour, a claim vigorously disputed by industry representatives.
Mr McLeod presented invoices demonstrating a 9% increase in tyre costs for his fleet, starkly contrasting with the council’s calculated 1.9% decrease for the same category. He argued that the council’s data was based on “normal motoring and not taxi operation.”
McLeod elaborated: “For example a taxi will, on average, cover almost twice the annual 19,000 mileage of a normal car. That obviously means twice as much servicing, replacement parts, and tyre wear. In short, we don’t think it’s comparing like with like,” suggesting that the Taxi and Private Hire Consultation Group should “maybe need to discuss this formula.”
Elected members acknowledged the need for a compromise, with Councillor Neil Copeland stating: “We have to find a balance between taxi drivers being able to make a living but the public being able to afford it.” The 5% increase was unanimously approved.
This decision aligns Aberdeen with other Scottish local authorities, including Aberdeenshire, Dundee, and Edinburgh, which have also approved similar fare adjustments. Aberdeenshire Council approved a 5% increase on 28 August, effective from November. Dundee councillors sanctioned a 4.62% increase (described as “almost 5%”) on 26 February 2026, which came into force on 1 April 2026. Edinburgh councillors considered proposals for a 5% hike in May 2026. Despite the rise, Aberdeen currently ranks as the 233rd most expensive place in the UK for taxi fares.
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The taxi trade in Aberdeen has faced ongoing challenges, including the recent approval of Uber’s licence to operate in the city on 5 June 2024. Uber’s entry was partly a response to perceived “significant issues with the current taxi service,” particularly concerning late-night queuing and a general shortage of available taxis.
Following the committee’s decision, Mr McLeod expressed cautious optimism, stating: “Whether it’s adequate or not, the next 12 months will tell us, but five (percent) is certainly better than two.”
Chris Douglas of Aberdeen Taxis added: “Anything that helps drivers absorb some of the rising costs will be appreciated by them I’m sure,” and that the 5% “pays sympathy to the public across the board and helps the drivers.”
