Professional Driver Magazine February 2024

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We put the BYD Seal Design RWD through its first UK paces

VOLUME 18 ISSUE 01 £4.95
Signed, Sealed, delivered
2 FEBRUARY 2024 contents 20 COVER STORY / FIRST DRIVE Seal the deal – China’s BYD gets serious about EVs 4-10 Business News The latest from around the industry 14 News analysis
20% VAT conundrum 18 Profile Belgraves of London 26 Road Test Lexus ES300h hybrid 30 Running report BMW i7 REGULARS 31 The Knowledge 32 The Advisor 33 The Insider 26 30 22 FEBRUARY 2024 14 ANALYSIS VAT consultation Will the private hire trade have to charge VAT on fares? Or will a recent ruling that the TOMS scheme is acceptable kill off the idea? MarkBursareports The 20% VAT conundrum Mark Bursa T HIS QUESTION OF VAT ON PRIVATE HIRE FARES HAS become something of an issue following last year’s Uber vs Sefton court ruling. This question of VAT on private hire fares has become something of an issue following last year’s Uber vs Sefton court ruling. This prompted Chancellor Jeremy Hunt private hire operators should charge VAT on fares. He announced the move in last year’s Autumn Statement, saying: “The government will consult in early 2024 on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC.” By the last week of February, however, no consultation had yet been published. Subsequently, there have been various attention-seeking “campaigns” against VAT. Most recently, right-wing Conservative MP Jonathan Gullis announced he had written an open letter to Chancellor Hunt, urging him not to consider adding 20% VAT to private hire fares, claiming such move was opposed by 70% of the population. Gullis is an unlikely champion of the downtrodden. He was sacked from ministerial role in the Education Department by Prime Minister Rishi Sunak. Liz Truss appointee, his brief ministerial career included reprimand from the Speaker for Nevertheless, his open letter talks a good game. Gullis outlined the severe challenges faced by the economy which have left businesses across the UK striving for stability amid a cost of living crisis. Gullis emphasised that any proposed imposition of 20% VAT on PHV journeys would disproportionately affect those least able to you to protect the taxi industry from yet another tax that will damage those who can afford it least.” Reliance on taxi and private hire services was high among vulnerable demographics, including children, the elderly, and those with mobility issues, as well as the 16 million people who use private hire vehicles for visits to hospitality venues. Gullis argued that the impact of VAT could devastate not sector, which is already grappling with the aftermath of challenging years. He urged the Chancellor to publish promised consultation before the Spring Budget. “You have committed to consultation which we are yet to see following the recent court ruling that to effectively impose 20% VAT levy on the public for private hire/taxi journeys significant rise from the current status quo.” Whether Gullis’ concerns are genuine – or a populist attempt to hang on to his Stoke-on-Trent seat, with an election on “HMRC will be obliged to impose 20% VAT” is Far from it. The judgement in the Sefton case did not specifically relate to VAT. Rather, simply ruled that the passenger’s contract was with the operator, not the driver. This is chargeable on fares or not. When was VOLUME 18 ISSUE 01 £4.95 Signed, Sealed, delivered We put the BYD Seal Design RWD through its first UK paces EDITORIAL DIRECTOR Mark Bursa 07813 320044 markbursa@prodrivermags.com COMMERCIAL DIRECTOR Paul Webb 07807 133527 paulwebb@prodrivermags.com ART DIRECTOR Alan Booth CONTRIBUTORS Ian Robertson, Glen Holder, Phil Rule, John Coombes, Phil Huff, Tim Barnes-Clay, Gary Jacobs, David Wilkins, Craig Thomas, Kevin Willis, Peter Panayiotou, Mike Stone, Dennot Nyack, Dr Mike Galvin, Tim Scrafton WEBSITE Martin Coombes 01959 547000 COMPANY ADDRESS 50 Beechcroft Manor, Oatlands, Weybridge, KT13 9NZ SUBSCRIBE Curwood CMS Ltd, The Barn, Abbey Mews, Robertsbridge, TN32 5AD 01580 883844 subs@prodrivermags.com Registered in England No.: 7086172 © 2024 All contents copyright of ProDriver Media Ltd. 18
The

The C word

CONSOLIDATION IS INEVITABLE IN JUST about every industry – the big fish snap up the smaller fish, and become bigger fish –until even bigger fish enter the stream and snap up the big fish. Soon you just have a couple of leviathans in the river, wondering what they should do now the food has dried up.

This is basically what’s happening in the UK taxi and private hire market. Over the past few years, a number of mergers and takeovers have resulted in the emergence of consolidators such as Veezu and Take Me, both striving to achieve something like national coverage and national branding.

Meanwhile, other reasonably-sized companies have been active, expanding into new markets – Street Cars and DG Cars, for example, are no longer one-city players. There’s no indication that this trend is going to slow down – and large operators are often faced with a difficult decision.

Do they keep going as a local market dominator? Do they try to grow by moving into neighbouring towns, or buying local rivals? Or do they put their business in with a bigger group – the way Sheffield’s City Taxis has done with Veezu, for example. I suspect route three has a lot of appeal for many operators.

Meanwhile, a proper big fish is making its presence felt in the stream. Singapore-based ComfortDelGro has been around for a while in the UK, most notably through its ownership of the ComCab black taxi brand. But in 2018, it sold the London arm of this business to Addison Lee, though it retained the Liverpool and Aberdeen bits of ComCab.

It has more recently added a couple of big private hire operators to its portfolio – Argyle Satellite on the Wirral, and King Cabs of Chester, leading to speculation that ComfortDelGro might be planning to “do a Veezu” in the market.

But instead, ComfortDelGro’s big play seems to be into the world of aggregators. It’s been present with CityFleet for a while, but hasn’t done much with the brand. But now, through the £80 million acquisition of market leader CMAC, ComfortDelGro is taking a different path to becoming a big player in the UK.

The potential for CMAC globally is substantial – and ComfortDelGro is already a global player, with 34,000 taxis on its books, mainly in Singapore, Australia and China as well as the UK.

Whether the CMAC deal means ComfortDelGro will remain acqusisitive is another matter. It’s clear that owning an aggregator and owning fleets are not mutually exclusive concepts. Nor does owning an aggregator mean you’d favour in-house fleets over everyone else – a dynamic operation such as CMAC is reacting to disruption, so probably can’t afford to be too strict about where the work goes. In any case, ComfortDelGro’s UK businesses are already CMAC users.

Of course, ComfortDelGro might choose to grow by acquing a consolidator – both Take Me and Veezu are citybacked businesses and there must be an end game for them. Addison Lee too.

ComfortDelGro is well placed here – it knows how to run taxi services. It’s worth remembering that not every transport giant that tries to run a cab firm succeeds. Remember when Transdev, a giant in public transport fleets with interests in rail, bus and tram, bought Green Tomato Cars? It didn’t go so well, and the company pulled out of the car sector.

The other fish in the consolidators’ pond is of course Uber. Having taken the surprising decision to axe its Local Cab experiment last year, there’s much speculation about what it will do next.

Uber is under pressure to make money, and that’s likely to result in a sharper focus on where it operates. Local Cab took it into many smaller towns, but not without problems. Will Uber go back to launching into cities where it now no longer has a presence? Perhaps – but only if it can secure enough work and find enough drivers. And that might rule out many smaller towns.

Meanwhile the consolidators have the opportunity to lock down their cities – if you’re running 1,000 cars or more in a city, where’s the space for Uber?

The ride-hailers are getting a bad reputation for cancelling bookings. Dr Mike Galvin has some interesting thoughts on this on page 29. And it would seem that if you deliver a consistent and reliable service – so when a customer orders a cab, they get a cab – you’ll have a competitive advantage over the ride-hailers, whose multi-app drivers are picking and choosing which jobs to accept. Simple, no?

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Take Me adds major Brighton operator to fast-expanding group

Take Me Group has made its first major acquisition of 2024, with Southern Taxis Brighton joining the fast-growing group this month.

David Hunter, CEO of Take Me Group said: “We have been talking with Southern Taxis owner Andrew Cheesman for a number of years and the timing is now right for all parties to add them to our network.”

Cheesman has been involved with Southern Taxis for 27 years, so will be a valuable asset bringing a wealth of knowledge and experience which can be shared back into the Take Me Group.

He said: “I have been chatting with David Hunter and John Gardner about this for a few years now on and off, but a couple of weeks ago we all met up for some fantastic fish and chips in The Regency in Brighton, and it quickly seemed right to get things finally over the line.”

Cheesman is also involved in a number of successful businesses along the South Coast, including the largest tourist magazine in the region called Brighton Visitor, which has a print run of 20,000 copies bi-monthly; and a drinks wholesale business called Brighton Soft Drinks, which services more than 300 bars, clubs, cafes, and hotels.

He said past business experiences were behind his decision to add Southern Taxis to the Take Me Group.

“Many years ago I was a PGA Pro Golfer, working in the Pro Shops at Golf courses,” he said. “I quickly learned the power of being part of a larger group and network. We grouped together Pro Golf shops, so we could make bulk purchases, reduce costs, and increase profits.”

He continued: “Much is the same today, the power of the Take Me Group will help my business reduce overhead

Leicester City Council looks to extend taxi age limits to 15 years

Leicester City Council has opened a public consultation regarding potential changes to age restrictions taxis in the city.

Leicester City Council’s current policy mandates that all vehicles licensed for the first time be no more than five years old, and all vehicles being relicensed be no older than 11 years. But local taxi trade

and increase profits. The knowledge that the group will bring will add to my own, and together as a group we will offer the customer a better service.”

Take Me Group’s John Gardner said the South Coast had been a key target area for Take Me. He said: “The group has been expanding north, east and west, and we already have real strength in areas from Plymouth, through Taunton and up into the Midlands corridor, so I thought it important to work with Andrew and his team to extend our reach along the

representatives have called for a review of these policies, citing challenges such as the pandemic, the cost of living crisis, and changing customer demands since the last policy review in 2012.

They claim Leicester has seen a decline in the number of hackney carriages in recent years, partly

southern coast.”

Southern Taxis Brighton has a number of operating divisions. It services the Brighton areas with Brighton & Hove City Cabs and the Lewes area with South Coast Taxis, as well as Premier Taxis in Peacehaven.

David Hunter said 2024 would be another busy year for Take Me Group. “This year is shaping up to be a turbocharged ride for Take Me Group Ltd as we rev up to welcome several new taxi businesses into our everexpanding network.”

to the high cost of acquiring suitable vehicles, while financial pressures were also beginning to affect the private hire sector.

Many private hire vehicles operating in Leicester are licensed by other councils, some of which have more lenient policies regarding vehicle age.

The consultation will ask drivers and the public whether that age limit should be extended to up to 15 years old. The consultation runs until February 25, and a decision is expected within two months of the end of the consultation period.

Leicester Assistant City Mayor Cllr Elly Cutkelvin, whose responsibilities include licensing, said: “Members of the taxi trade in Leicester have asked us to look again at the age policy around vehicles used as taxis, and we have agreed to review these conditions.”

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Take Me Group CEO David Hunter [right] welcomes Southern Taxis Brighton owner Andrew Cheesman [left] to the Take Me family

ComfortDelGro to propel CMAC global expansion after £80 million takeover

Mark Bursa

Singapore-based transport giant ComfortDelGro has acquired ground transport management specialist CMAC Group for £80 million. The deal has been done through ComfortDelGro’s whollyowned subsidiary CityFleet Networks, and is expected to drive CMAC’s expansion into mainland Europe.

As well as the UK, CMAC has operations in France, Spain, Portugal, Greece and the Netherlands, handling disruptions and journeys on behalf of airlines, ground handlers, train operators, and corporate clients.

managing director and co-founder Peter Slater, though the other founder, Steve Turner, has decided to leave.

ComfortDelGro chairman Mark Greaves said: “The acquisition of CMAC means we not only achieve a meaningful expansion of our footprint in the UK and entry into several new countries in Europe but also acquire an extensive network of transport operators, strengthening our point-to-point transport solutions as well as growing our customer base.”

Most of the existing CMAC management team is staying with the business, including

Slater said the two companies had been in discussions since October 2022. The deal would allow CMAC’s expansion to reach the next level. “To carry on our growth in Europe we needed some more firepower and backing.”

Slater said Comfort DelGro was a better option than private equity funding. “We didn’t want people who didn’t understand the industry and only brought money to the table,” he said. “ComfortDelGro has knowledge of the industry and is interested in CMAC as it is, but in more and new territories.”

ComfortDelGro does have a number of taxi operations in the UK, including ComCab in Aberdeen and Liverpool, Argyle Satellite Cars in Birkenhead and King Cabs in Chester.

But Slater said CMAC would not be favouring these companies over other suppliers. “One part of the deal is that supplier selection criteria will not change at all –we need to be independent, and we’ll need as many suppliers as before.”

He added that CMAC was already dealing with the Comfort Delgro subsidiaries in any case, and noted there were long-established links between Argyle Satellite Cars and CMAC, as the operator once owned CabFind, which CMAC acquired in 2018.

As well as Europe, Slater believes there are opportunities for CMAC to provide a service in other countries where ComfortDelGro operates, which includes China, Australia and New Zealand as well as Singapore. Worldwide, ComfortDelGro owns a fleet of 34,000 taxis. “Australia wasn’t on our original 5-year plan, but now it might move up the pecking order,” Slater said.

Successful Portsmouth private hire vehicle bus lane trial could be made permanent

Mark Bursa

Allowing private hire vehicles to use five bus lanes in Portsmouth to improve reliability has proved a success, and could be made permanent, the council has reported.

Portsmouth City Council carried out a successful 14-month trial of Portsmouth-licensed private hire vehicles, giving them permission to use five bus lanes (Cavell Drive, Mile End Road, Marketway, Bishop Crispian Way and Queens Street).

Now recommendations are being put forward to make the trial locations permanent and to carry out road safety audits on an initial further

14 bus lanes for potential expansion in the future.

Cllr Gerald Vernon-Jackson, cabinet member for transport, said: “Private hire vehicles provide essential transport in the city especially for those travelling in groups or for those that can’t catch

the bus, walk or cycle. Developing and improving the reliability of public transport is essential for our residents and businesses in Portsmouth while also ensuring the safety of road users when making changes in the city. I look forward to considering the recommendations.”

All bus lanes can be used by buses and coaches as well as “Hackney carriage” taxis, emergency vehicles, pedal cycles and rental e-scooters. This trial has taken a considered approach to expanding this to include private hire vehicles in some bus lanes, and monitoring carried out during the trial showed a slight improvement in journey times. If made permanent the sites will continue to be monitored.

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Veezu accelerates rebrand by ditching local names in West Midlands and South Wales

Mark Bursa

Veezu has accelerated its national rebrand by renaming all its West Midlands and South Wales operations.

The move means the A2B Radio Cars, Go Carz and Dragon Taxis names will be replaced with Veezu branding . The move follows similar initiatives in Bristol and surrounding areas last year, where V Cars taxis all adopted a Veezu corporate identity; and in Sheffield, where City Taxis rebranded as Veezu.

Remaining Veezu operations in Leeds, Norwich, Cambridge and other cities are likely to follow in coming months, creating a single Veezu brand operating in a growing number of UK cities.

In the west Midlands, A2B Radio Cars is the biggest private hire operator in Birmingham and Solihull. The company has been operating in Birmingham since 1991 and was acquired by Veezu in 2016. Since then, the firm has grown to partner with over 1,000 driver-partners across the region and has acquired other local operators, such as Able Senator Cars.

Go Carz has been operating in Wolverhampton, Shrewsbury and Telford for more than 25 years and was acquired by Veezu in 2020. It now has 1,700 driver-partners and has also been acquisitive, recently buying local rival Diamond Cars.

Graham Hoof, regional operations director for Veezu in the Midlands, said: “The rebrand is more than a name change. We are firmly putting the Veezu name on the map in the Midlands whilst staying committed to serving our local community. We’re introducing new technology to make it easier for people to access transportation across the region.”

In South Wales, Veezu has acquired a number of operators since it was founded in 2013. It has operations in Cardiff, Newport, Bridgend, Cwmbran, Pontypool and the Vale of Glamorgan. The company is based in Newport and last year moved to new premises in the town. A number of brands were consolidated under the Dragon Taxis name, and this has now also been replaced with full Veezu branding.

Passengers can still call their usual local numbers and use the existing mobile app, but Veezu is introducing a new mobile app with smarter address search capabilities, easier access and improved functions across the board. Veezu also

offers multiple payment options, including Google Pay, Apple Pay, AirPay, card or cash.

n Veezu has joined the International Road Transport Union (IRU). Veezu CEO Nathan Bowles said: “Given the pace of our growth over the past decade and the road ahead, joining IRU and its global network of road transport associations and companies will only help us to continue evolving and helping towns and cities to move safely and efficiently.”

IRU Secretary General Umberto de Pretto said: “We’re delighted to welcome a new taxi member aboard. Access to transport is vital to any thriving community – and that’s exactly what Veezu offers.”

East Riding Council launches campaign to attract new taxi drivers

East Riding of Yorkshire Council is launching a campaign to encourage Bridlington and district residents to consider becoming licensed private hire or taxi drivers.

The move is designed to address the issue of the ageing workforce within the taxi sector, with many drivers having retired in recent years.

The council said that there was currently no shortage of licensed drivers in the area but the move was designed to prevent a potential shortfall in the future.

Cllr Leo Hammond, cabinet member for planning, communities and public protection, said: “We are taking prudent

during the night time economy, and are vital for our communities to function.”

“There is much more to being a licensed driver than you might think, and we hope that more people will want to consider taking this on, which will benefit both themselves and the areas they serve. It’s a very diverse and rewarding role.”

To become a licensed driver, applicants would be subject to enhanced checks on their medical history, criminal history, driving history and their right to work in the UK. Applicants should contact taxi. hub@eastriding.gov.uk

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action now to prevent future problems. Licensed drivers perform an essential transport role, especially in rural areas or Veezu continues to evolve its branding under CEO Nathan Bowles

Chabé jets in to private aviation sector with Limo Plus acquisition

Fast-growing chauffeur operator Chabé has acquired Farnboroughbased Limo Plus. It is the first acquisition that Chabé has made in Britain since the Paris-based company set up its UK subsidiary in 2020.

Limo Plus serves a similar portfolio of high-end clients to Chabé – and crucially, it brings access to a number of private jet operators , an area that Chabé is keen to develop, according to UK managing director David Bruce.

“Private jets aligns with our business – we serve luxury hotels, luxury brands, luxury events, so that fits very well with our clients,” Bruce said.

There is plenty of scope for growth with several major private jet airports around London, including Stansted, Farnborough, Luton, Oxford and Biggin Hill – and there are 6 handling agents at Biggin Hill alone.

Limo Plus was founded in 1997 by David and Jo-Ann Ramos. They are staying with the business, but the Limo Plus office in Farnborough is closing, with services all being run from Chabé’s Heathrow offices.

David Bruce said: “We’ve known Jo-

Ann and David since 2010 – Chabé has worked with them in international markets as a fulfilment partner.”

“We’ve now built suitable scale to serve high -touch markets, so there was a logic in coming together, as our client bases are very similar in terms of demands, but they do not overlap at all.”

He continued: “We already serve some of the same sectors, for example financial services and private equity.

London’s latest 5-star hotel opts for British luxury

London’s latest 5-star hotel has chosen two very different, but distinctively British vehicles to use as luxury guest transporters.

The Peninsula London, situated at 1 Grosvenor Place in the heart of Belgravia, opened in September 2023. It has bought four Bentley Bentayga hybrid SUVs, as well as two VIP LEVC taxi conversions (pictured) from luxury car dealer Clive Sutton.

The vehicles all have bespoke exterior paintwork in the group’s signature ‘Peninsula Green’ colour. The Bentaygas were built to a very high specification by Mulliner, Bentley’s personal commissioning division

Both the Bentleys and the taxi conversions carry golden Peninsula branding on both doors

But Limo Plus serves the private aviation sector with specific private jet clients, which we did not have. We do serve the private jet terminals but not operators, so there is perfect synergy.”

Jo-Ann Ramos explained the decision to sell to Chabé: “We had a decision to make – do we scale up the business, or partner with a proven operator that understands high-touch operators?”

The reaction to the deal has been very positive, she said: “The reception from customers has been brilliant – a lot of them are friends and they’re happy that I’m staying around with Chabé. Our private jet clients are happy that we can now serve more places with access to the Chabé supplier base. Limo Plus was a global limo service but Chabé gives us far greater global reach, so we’re excited about that.

The move will free David and Jo-Ann from the day-to-day management of the business, allowing them to spend more time looking after clients and developing new ones, especially in the private aviation sector.

David Bruce added: “We will bring all the Limo Plus clients, staff and chauffeurs over to Chabé to give us further capacity.”

He said Chabé would look “selectively” at further acqusitions. “The Limo Plus deal didn’t happen overnight – the conversations had been going on for two years,” he said. “You can’t force a deal like that . There has to be logic to the deal and value for all parties, including the customers.”

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and gold coachlines, The taxis have a custom central bulkhead to create an open cabin space. The Clive Sutton taxi conversions have a switchable panoramic glass roof to maximise sightseeing potential, plus a large fridge that can accommodate several bottles of champagne. High-end features include RollsRoyce motorised door closures and tancoloured Bentley leather seats. Jo-Ann Ramos and David Bruce: “Limo Plus was a global limo service but Chabé gives us far greater global reach”

Lords committee urges Government to recharge its electric car strategy

Mark Bursa

A House of Lords committee has urged the government to speed up the transition to electric vehicles through the adoption of new measures.

The Environment and Climate Change Committee’s report, titled “EV strategy: rapid recharge needed”, calls for the Government to adopt a range of measures to encourage the switch to EVs, including tackling the disparity in up-front costs between EVs and petrol/diesel cars, and looking at targeted grants to incentivise the purchase of new EVs.

The report is a response to public fears that a combination of higher purchase costs, insufficient charging infrastructure and mixed messaging means people will be reluctant to adopt EVs.

rollout of EV infrastructure is not unduly delayed by out-dated regulation; and consulting on mandating workplaces with designated car parking spaces to install EV charge points.

The Lords Select Committee also calls for new initiatives, including exploring ways to incentivise secondhand EV sales; developing a ‘battery health standard’; changing VED to give drivers a clear steer on future motoring costs; and supporting the RAC’s call to harmonise VAT for charging by reducing the 20% VAT rate applied to public charging to 5% in line with domestic electricity.

The committee is also calling for work to accelerate the rollout of the UK’s charging infrastructure through a range of measures, such as extending Local Electric Vehicle Infrastructure (LEVI) funding for another three years; consulting on offering a ‘right to charge’ for tenants and leaseholders in multi-occupancy buildings; reviewing planning regulation to ensure that the

Mansfield Council to allow taxis to tow luggage trailers and carry ‘run-flat’ tyres

Mansfield District Council has approved amendments to its hackney carriage and private hire vehicle policy which will allow cab drivers to tow luggage trailers and carry a runflat tyre.

The committee is calling for industry support, such as enhancing UK manufacturing and battery innovation and accelerating investment in UK vehicle and battery recycling facilities.

Baroness Parminter, chair of the inquiry, said: “Surface transport is the UK’s highest-emitting sector for CO2, with passenger cars responsible for over half those emissions. The evidence we received shows the Government must do more – and quickly – to get people to adopt EVs. If it fails to heed our recommendations the UK won’t reap the significant benefits of better air quality and will lag in the slow lane for tackling climate change.”

The RAC said it was an “important and farreaching report” and urged the Government to take the recommendations seriously. RAC head of

policy Simon Williams said: “We have long argued that mass uptake of EVs – which is the Government’s aim –depends on prices falling to make them the natural choice for more people, so we are particularly pleased to see the Committee supporting the introduction of targeted grants for new electric cars, aimed at the more affordable end of the market.”

He continued: “We believe the UK was too hasty in scrapping the Plug-in Car Grant as it did lead to more lowerpriced models being introduced. Without further financial support, it will be a long time before the majority of drivers will be able to afford to make the switch to electric.

Williams said: “The Committee rightly acknowledges the important role the 2023 Public Charge Point Regulations will play in ensuring drivers benefit from good quality public charging infrastructure in the future, and we’re pleased to see its suggestion that elements of the UK’s first Public Charging Charter – which we developed alongside the FairCharge campaign – could form the basis of a future review of them.”

“The unequivocal support for VAT to be charged at the same 5% rate whether a driver is charging at home or at a public charger also now piles yet more pressure on the Treasury to correct this bizarre anomaly. As things stand, the current mismatched VAT rates are an unnecessary barrier to switching to an electric car for the estimated third of people who can’t charge an EV at home and who wholly rely on the public charging network.”

These amendments are primarily driven by the necessity to adapt to the changing specifications of modern vehicles. Recognising the modern trend of vehicles being equipped with smart tyre repair kits rather than full spare wheels, the council has amended the spare tyre requirement. The new policy accepts either a smart repair kit or run-flat tyre as viable

alternatives. However, vehicles with a run-flat tyre or a temporary tyre repair will not carry passengers until a full specification wheel is fitted. A major change, garnering significant discussion, is the authorisation of tow bars and trailers for taxis. This amendment, in line with standards from other licensing authorities, addresses the frequent

issue of insufficient boot space for luggage during airport runs. The new policy enables taxis to use trailers, enhancing luggage capacity and better meeting customer needs on airport transfers.

Aligning with the performance of modern vehicles, the council has lowered the minimum brake horse power requirement from 90 to 80. This adjustment expands the range of vehicle options available to drivers.

The amendments were made without public consultation, as they were not considered to significantly impact passengers or the taxi trade. Instead, they were formulated based on feedback from the taxi industry and the council’s Fleet Services.

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LPHCA demands urgent talks with TfL over ‘unacceptable’ 2024 signage requirements

The LPHCA has written to TfL Director of Licensing Helen Chapman (pictured), demanding an urgent meeting over “unacceptable” new signage requirements and complaints procedures for all private hire vehicles, due to come into force next July.

The new signage rules could see vehicles – even chauffeur cars –festooned with warning signs and compliance notices for CCTV, no smoking, complaints procedures and cyclist warnings. The signs will not be fitted at the operator’s discretion –instead, they will be compulsorily fitted by staff at the NSL vehicle inspection centres when vehicles are being tested.

calling for “urgent dialogue” on the issue.

An open letter signed by LPHCA chairman Steve Wright, Private Hire Board chairman Keith Keen, Chauffeur and executive chair Greg Mendoza and GMB Union regional organiser Steve Garelick, was published on social media,

Widespread anger over Northampton council plan to axe roof lights from private hire vehicles

Northampton drivers are up in arms about council plans to remove roof lights from private hire vehicles.

The letter states: “The private hire trade representatives are completely dismayed with the proposals for signage, which would appear to be a requirement for NSL to install multiple signs on the interior and exterior of each private hire vehicle following the inspection.”

The LPHCA letter argues that adding more signage will be counter-productive. “It has long been an accepted view that adding signage to private hire vehicles will confuse the public, narrow the gap between Taxi and

Private Hire, and lead to illegal and dangerous activity by those seeking to exploit that confusion. It is clear there is a lot of anger being expressed that we feel will lead to issues for TfL TPH in the future.”

The letter concludes: “At this stage we feel urgent dialogue is needed, so we can calm the industry down and give you time for reflection on what we put forward in the consultation, which, with respect, seems to have been completely ignored.”

Martin Cox of Gerrards Chauffeurs said TfL was failing to recognise that chauffeur operators had different requirements to basic private hire vehicles: “We run vehicles now costing £120,000, and they will from next July look like regional taxis.”

Cox continued: “TfL is standardising Private Hire and we are being downgraded. We need a Chauffeur license in London. We need to create our own voice, or we just sit on our backsides and become tacky and full of nonsense signs.”

West Northants Council recently approved a policy that all licensed private hire vehicles must display door signs instead of roof signs from April 1. The change is likely to affect more than 800 drivers in West Northamptonshire.

A council spokeswoman said: “This will ensure that it is easier for people to differentiate between taxis and private hire vehicles, and ensure it is clear that vehicles are licensed by WNC.”

“There will be a transitional period to allow for this change for those that currently have

roof signs. WNC will work with the trade and the local community to raise awareness of this change and what to look out for.”

But one private hire driver told a local newspaper that the new rules were “ludicrous”, claiming the roof lights were a help to public safety, and that magnetic signs on taxi doors could be stolen and attached to any car.

And he said the roof light made it easier to spot the car at night. “If I’m going to an airport or a concert, even if they say it’s illegal, I’ll put my ‘bubble’ back on my vehicle because I don’t

want to be waiting hours for somebody to come out and not be able to find me,” the driver said.

The WNC move is in line with national licensing guidelines that suggest only street-hailable hackneylicensed taxis should have roof lights, while PHVs should not.

The private hire driver said: “I just find it ludicrous that 850-odd cab people have got to get rid of the yellow bubble, which does the job perfectly fine, to put this flimsy magnetic strip on. It just doesn’t make sense. I just don’t know what to think in this industry at the moment.

“I don’t see why they couldn’t just buy 50 bubbles, which I think are £55 each, for the taxis without.

“Like most things with the council, they just do what they want. You’re dealing with people who know nothing about business. I doubt any councillors know anything about the private hire and taxi business.”

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New partnership offers Addison Lee drivers big discounts on London taxi ‘knowledge’

Mark Bursa

Addison Lee has launched a new partnership with the WizAnn Knowledge School to help black cab drivers looking to build a career.

In 2021, Addison Lee bought ComCab, one of the largest black cab operators in London, and the initiative is designed to help stem the fall in number of TfL-licensed cabbies in recent years. The latest figures show just 17,625 taxi driver licenses in the capital, down from 24,000 a decade ago.

The decline is blamed on number of factors, including the pandemic and the extensive training required. By partnering with the WizAnn Knowledge School, Addison Lee will be able to offer private hire drivers wanting to become cabbies ‘Knowledge’ training at a discounted rate.

The Knowledge involves learning every road within a six-mile radius of Charing Cross. This process typically takes up to 4 years and has the potential to deter new recruits looking

to kickstart both their career and their earnings.

Addison Lee’s partnership with WizAnn aims to give drivers the opportunity to ‘earn while they learn’ and is open to existing Addison Lee drivers and private hire drivers interested in pursuing a career with the firm.

With the private hire industry continuing to surge across London – with new figures showing 106,538 private hire driver licenses – there is a growing opportunity to support these drivers to pursue long-term, fruitful

Addison Lee resets green targets and calls on Khan to keep c-charge EV exemption

Addison Lee has rowed back on its pledge to have an all-electric fleet by 2025, and instead has announced a major order for plug-in hybrid Volkswagen Multivan people carriers.

The company cites a lack of availability of suitable EV models, particularly 7-seaters, and ongoing problems with charging infrastructure. The company has set a new goal of a zeroemissions capable fleet by April 2024, and is calling on London Mayor Sadiq Khan to abandon plans to abolish the congestion charge exemption for EVs from 2025.

The £30 million order for 600 VW Multivans will see the last of the Addison Lee diesel Ford Galaxy and VW Sharan vehicles leave the fleet in the spring. The move follows the acquisition

careers in the black taxi industry.

The firm will be delivering the Knowledge training for private hire drivers at its West Drayton Fleet Hub, and all materials – from training documents to videos, and a 24-hour support group – is being provided at a discounted rate, laddering up to no costs for drivers in the fourth year.

The deal reduces Knowledge training to £40 per month exclusively for Addison Lee, with the company covering the majority of the bills. Throughout the four-year training, the cost to drivers will be as follows:

400 Audi A6 plug-in

Addison Lee has also built a fleet of 1,000 Volkswagen ID.4 electric cars as the mainstay of its London private hire fleet.

Addison Lee CEO Liam Griffin said: “As the first private hire operator in London to introduce electric vehicles at scale, we remain committed to operating a zero emissions fleet. However, our

n Year 1 – Driver pays £30 per month (AL covers £10 per month)

n Year 2 – Driver pays £20 per month (AL covers £20 per month)

n Year 3 – Driver pays £10 per month (AL covers £30 per month)

n Year 4 – Driver pays £0 per month (AL covers £40 per month)

Liam Griffin, CEO of Addison Lee, said: “We know that if we want to see the black taxi thrive, we must provide drivers with the right support and benefits to encourage them into the field. We hope our partnership will spur a positive change for the industry and uphold the rich cultural significance of London’s iconic black taxis.”

Keith Prince, chair of the Greater London Authority Transport Committee, said: “The partnership between Addison Lee and WizAnn Knowledge School signifies a muchneeded shared commitment to future-proofing the city’s transport network. With driver numbers falling, it’s heartening to see the proactive steps taken to revitalise the black taxi trade.”

experience has since shown us that we need to be pragmatic about how we achieve this.”

He continued: “Right now, there is neither the availability of vehicles nor robust enough charging infrastructure in London to go fully electric at speed and scale. That’s why we’re investing today in a broader range of sustainable options to meet current demand from passengers - while remaining committed to our long-term goal of full electrification.”

“It’s critical that we have both the right infrastructure and regulation in place to allow us to achieve this. That’s why we’re asking the Mayor of London to reconsider his plans to abolish the congestion charge exemption for electric vehicles. Removing this vital incentive will make it more costly to operate electric vehicles in the capital and jeopardise his net zero 2030 ambition for the city.”

As well as buying 1,000 fully electric ID.4s, Addison Lee has invested significantly in sustainable vehicles as well as in London’s infrastructure to ensure drivers have access to reliable charging options.

news FEBRUARY 2024 10
of hybrids to replace diesel Mercedes-Benz E-Classes on Addison Lee’s premium fleet.
www.howdeninsurance.co.uk/chauffeur Howden, the new name for Aston Lark Our People Make It Possible Effortless journeys, by Peter’s chauffeur services. Easy insurance on the road, by Ricky at Howden. Howden UK Brokers Limited is authorised and regulated by the Financial Conduct Authority No. 307663. Registered in England and Wales under company registration number 02831010. Registered Office: One Creechurch Place, London, EC3A 5AF. Calls may be monitored and recorded for quality assurance purposes. HUBL-CS-CH-022-0124 To find out how Howden could help your chauffeur business, call Ricky on 020 8256 4916 or email chauffeur@howdeninsurance.co.uk

The CabFusion Network story

Cabfusion networks is the new name for Cab Guru. The company has unveiled its new corporate identity, and CEO Phil Bailey explains the logic behind the change.

The name of our new identity is inspired naturally by the dictionary definition of the word itself: fusion – the process or result of joining two or more things together to form a single entity.

This new name is an evolution, building on the strong foundations laid by Cab Guru over recent years. Our new identity is designed to align better with our expanding services and vision.

As we embrace this change, The CabFusion Network and Cordic Technology will continue to stand at the forefront of the industry. There will be no impact on current workflows for either our valued clients and customers or our prized partner fleets.

The CabFusion Network is set to become the nucleus of work sharing, to power the success of independent operators in our industry. Banks allow customers to get cash from any machine, no matter which bank they have their account with. The CabFusion Network is aiming to provide a similar simple solution to give your customers what they want, and for you to provide your service to them, and we are working hard to achieve that.

We are committed to integrating with every software provider in our sector, both to make job-sharing more straightforward and to protect your work from the app disruptors.

Our new identity is part of our clear story to the industry and the market of who we are, where we’re headed, and how we aim to help independent operators become stronger by working together.

The CabFusion Network commitment to you is simply this: CabFusion is formed by operators, for operators, driven by the common goals of working in partnership and succeeding together.

The CabFusion Network will allow operators to accept bookings from other operators who may have a job that they cannot cover because they are at capacity, or possibly

the booking is in an area outside their preferred operating area.

We will also be offering work directly from our current and future valued clients that hold a national/international account with CabFusion Network.

CabFusion will allow you to say yes, even when you cannot cover this work yourself. This is infinitely better than refusing the job and giving the customer a good reason to try an app ‘disruptor’, only to never see that precious customer again.

We want passengers to have the same bestin-breed booking experience they have become used to, even if the booking has been shared with another operator who uses different despatch software.

We are currently building the deepest API integrations to pull back reliable GPS data for accurate ETAs, vehicle status, and precise location no matter what software is used.

There are many ground transport platforms that can put a job into the system of an operator but the idea of an operator putting a job seamlessly into the dispatch system of another operator, regardless of their native choice of system is a truly trailblazing innovation.

We firmly believe that forward-thinking operators appreciate that tomorrow’s industry needs to interact with fellow operators that may have been your competitors but are increasingly becoming your friends because of the effects of the app disruptors.

We also want smaller operators to be aware that there is a place for them on this network even if they don’t currently use software within their business. We appreciate that a small operator may not need dispatch technology at all, and we have already found a way that will allow them to be a vital cog in the wheel. We are dedicated to bringing new, exciting ways for the industry to work together. Local networks where operators can choose who and how to work with other operators. The ability to share work without revealing sensitive data, which will always be secure, protected and always remain in the ownership of the individual operator.

news FEBRUARY 2024 12
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Created by Operators, for Operators. We are stronger by working together. Come and be part of the UK’s fastest growing Taxi and PH Network. CALL US: 03302 300000 EMAIL US: join@cabfusion.com www.cabfusion.com THE CABFUSION NETWORK Join the CabFusion Network! Providing the nucleus of work sharing capabilities between operators and software providers

Will the private hire trade have to charge VAT on fares? Or will a recent ruling that the TOMS scheme is acceptable kill off the idea? Mark Bursa reports

The 20% VAT conundrum

THIS QUESTION OF VAT ON PRIVATE HIRE FARES HAS become something of an issue following last year’s Uber vs Sefton court ruling.

This question of VAT on private hire fares has become something of an issue following last year’s Uber vs Sefton court ruling.

This prompted Chancellor Jeremy Hunt to launch a consultation into whether private hire operators should charge VAT on fares. He announced the move in last year’s Autumn Statement, saying: “The government will consult in early 2024 on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC.” By the last week of February, however, no consultation had yet been published.

Subsequently, there have been various attention-seeking “campaigns” against VAT. Most recently, right-wing Conservative MP Jonathan Gullis announced he had written an open letter to Chancellor Hunt, urging him not to consider adding 20% VAT to private hire fares, claiming such a move was opposed by 70% of the population.

Gullis is an unlikely champion of the

downtrodden. He was sacked from a ministerial role in the Education Department by Prime Minister Rishi Sunak. A Liz Truss appointee, his brief ministerial career included a reprimand from the Speaker for “unministerial behaviour”.

Nevertheless, his open letter talks a good game. Gullis outlined the severe challenges faced by the economy which have left businesses across the UK striving for stability amid a cost of living crisis. Gullis emphasised that any proposed imposition of a 20% VAT on PHV journeys would disproportionately affect those least able to bear the financial burden.

He wrote: “We are writing to you to urge you to protect the taxi industry from yet another tax that will damage those who can afford it least.”

Reliance on taxi and private hire services was high among vulnerable demographics, including children, the elderly, and those

with mobility issues, as well as the 16 million people who use private hire vehicles for visits to hospitality venues. Gullis argued that the impact of VAT could devastate not only the taxi industry but also the hospitality sector, which is already grappling with the aftermath of challenging years.

He urged the Chancellor to publish a promised consultation before the Spring Budget. “You have committed to a consultation which we are yet to see following the recent court ruling that HMRC will be obliged under current rules to effectively impose a 20% VAT levy on the public for private hire/taxi journeys - a significant rise from the current status quo.”

Whether Gullis’ concerns are genuine – or a populist attempt to hang on to his Stoke-on-Trent seat, with an election on the horizon – is unclear. But his claim that “HMRC will be obliged to impose 20% VAT” is by no means certain.

Far from it. The judgement in the Sefton case did not specifically relate to VAT. Rather, it simply ruled that the passenger’s contract was with the operator, not the driver. This has caused confusion as to whether VAT is chargeable on fares or not. When it was

FEBRUARY 2024 14 analysis: VAT consultation

assumed that the contract was with the driver, there was no likelihood of VAT being charged as very few drivers earn sufficient money to need to register for VAT.

Eazitax’s Gary Jacobs, commenting on the Sefton ruling, said: “The judge’s ruling explicitly stated that the VAT consequences of changing the operating model were irrelevant to the case,” he said. “This meant that the court’s decision did not hinge on potential changes to the VAT obligations of ride-sharing platforms.”

Operators generally are VAT-registered, and therefore could be liable for VAT – if such a ruling were made. For the moment, there is a loophole which reduces the VAT liability to just the operator’s margin, using a loophole known as the Tour Operators’ Scheme (TOMS).

This means they only charge VAT on their cut from the fare, with the driver’s proportion not subject to VAT. The scheme effectively means VAT is only charged (at 20%) on the operator’s commission (usually 15%), so the VAT element equates to roughly 3% of the fare charged. No VAT is paid on the driver’s earnings.

And another recent court case appears to back use of the TOMS as perfectly reasonable. In December 2023, ride-hailing operator Bolt won its appeal against HMRC over whether private hire operators are eligible to use the TOMS.

The ruling will certainly make any effort by HMRC to force all private hire operators to charge full 20% VAT on fares a lot more difficult, as the judge was quite clear in his support of the scheme.

Ruling in favour of Bolt, Tax Tribunal Judge Greg Sinfield KC said: “I have decided that the mobile ride-hailing services supplied by Bolt are services of a kind, namely passenger transport, commonly provided by tour operators or travel agents and the supply of such services falls within the scope of the TOMS.”

The dispute concerned the amount of VAT due on the supplies of ride-hailing services made by Bolt as ‘principal’.

Judge Sinfield said: “There is no dispute that supplies of ridehailing services are chargeable to VAT at the standard rate.”

He ruled that Bolt should not account for VAT on the total amount paid by the customer. Instead it should charge VAT only on the margin (the difference between the amount paid by the customer and the cost to Bolt of goods or services supplied by

taxable persons and used directly to provide the service).

So if Bolt’s margin on a fare was 15%, VAT would only be chargeable on that portion of the fare.

Judge Sinfield dismissed HMRC’s argument that Bolt had “materially altered” the service provided by its independent drivers. HMRC’s case was that tour operators and travel agents buy in services and simply pass them on to the traveller, whereas it argued that the bought-in drivers’ services are changed by the use of Bolt’s own resources and therefore they are ‘in-house’ or materially altered because they are not merely passed on. “I do not agree with this analysis,” the judge said.

“I consider that the supply of mobile ridehailing services, without any additional elements, to a traveller is a provision of travel facilities within the TOMS in the same way as a supply of accommodation only,” he concluded.

The judge also said there should be no distinction between ride-hailing services and pre-booked journeys. “Any distinction based on how far in advance a ride was booked would necessarily be arbitrary, eg a ride booked two hours in advance is within the TOMS whereas one booked one hour 59 minutes before the pick-up is not. Such a threshold cannot be determinative,” the judge said.

I do not need to consider where the dividing line lies between ride-hailing services and scheduled services for the purposes of the TOMS.”

The next test for the TOMS will be in the first half of 2024, when HMRC is facing a similar appeal from Bolt’s rival Uber over the same issue. An Uber spokesperson said the company would not be commenting on the Bolt ruling as it was preparing its own litigation.

In the meantime, some operators have started lobbying for VAT to be zero-rated on private hire journeys, which would bring it into line with hackney taxis, and indeed bus and train fares. They argue that increasing fares by 20% at a time of economic hardship would hit poorer people who rely on private hire vehicles. This would reduce demand, causing a detrimental effect on the industry.

However, Addison Lee, which serves a predominantly business clientele, started charging VAT on fares in 2021. Chief executive Liam Griffin said: “We welcome the Chancellor’s commitment today to reviewing VAT on private hire journeys. After the Court ruling against Uber in 2021, Addison Lee took the decision that the right thing to dolegally and morally - was to apply VAT on the full fare paid by our passengers. No other major operator has followed us in paying the full VAT on the full fare. In fact, the absence of clear guidance from HMRC means that most have sought to pay as little VAT as possible.”

He continued: “This leaves our business, as well as other long-standing operators in our local communities, at a competitive disadvantage and potentially represents a significant loss in tax revenue due to the Exchequer. It is crucial that the Government seeks to level the playing field in the private hire industry in London and across the country, and we would welcome clear guidance from HMT and HMRC on how VAT should be applied and enforced.”

“It seems to me that ridehailing services and scheduled rides cannot be differentiated and are both services of a kind commonly provided by tour operators or travel agents for the same reasons. It follows that

When Chancellor Hunt gets round to launching his consultation, he will need to factor in both the Sefton and Bolt rulings, which would appear to carry more weight than any demand from HMRC .

A zero-rating would be the optimum result, but universal acceptance of TOMS would be a decent result, as HMRC would receive some money, but the impact on the private hire trade and its drivers and customers would not be too harsh. There is cause for cautious optimism that we won’t be stung for 20% across the board –though as we’ve seen with this government, anything could happen.

FEBRUARY 2024 15 analysis: VAT consultation
[above] Chancellor of the Exchequer, Rt. Hon. Jeremy Hunt MP [below] Jonathan Gullis MP

The Big Picture

profile: Belgraves 18 FEBRUARY 2024

Jason ikpedJian is a bit of a film buff. The clues are there in Belgraves’ new head office – from the signed Back to the Future poster on the wall to the giant model of James Bond’s Aston Martin DB5 on the boardroom table.

And if Hollywood’s finest scriptwriters were adapting the Belgraves story for the big screen, it’d be a feel-good movie – but with a few plot twists. The story of how one of London’s most successful high-end chauffeur firms weathered the storm of the pandemic and bounced back better and stronger.

To do so, Jason had to do battle with some serious villains, not based on a remote island but in a faceless office block in the city – you guessed it –our white cat stroking baddies are not Spectre, but good old TfL.

There’s something of a spy movie about the location of Belgraves’ new office. On a suburban street in Sutton, a blink-and-you’ll-miss-it alleyway between two semis leads to a gate – behind which is a courtyard with generous parking area and a wellequipped, single-storey office. Very calm and relaxed, and from the street, you’d have no idea it was there.

It’s a perfect base for a business that prides itself on offering a discreet, high-end service to a wide sweep of private and corporate clients. And at Professional Driver, we know how good Belgraves is –the seven QSi Awards on the boardroom mantlepiece tell their own story.

After a tough time during the pandemic, which saw the fleet reduced to just 7 cars, Belgraves bounced back quickly, and now the fleet is at 18 – as big as it’s ever been. And it’s not been without growing pains, Jason says.

“There’s a hell of a lot of work involved in keeping quality levels up when you get close to 20 cars. When you think you’re on top of things, you find more issues.”

The fleet’s about to grow again, with another Range Rover on order, and then one or two armoured BMW X5s for security work. At the same time, older cars are being sold as some of the more demanding clients insist on being picked up in cars that are no more than three years old.

With many chauffeurs complaining about the difficulty in sourcing new cars, how easy has Belgraves found it to renew the fleet? “It’s been ok. If I want BMW i7s I can get them (through BMW’s own chauffeur programme). I normally would order now for March with the new 24 plate.”

Also on order are four new-shape Mercedes-Benz EQVs electric people-movers. Belgraves has been an enthusiastic early adopter of the EQV since it was launched in 2020, and Jason is looking forward to the upgraded interiors of the new version – which looks very similar to the previous model but is almost completely new.

However, he does acknowledge that there are limitations with going electric. And despite an enormous commitment to going green, which saw Belgraves share the Gold QSi Environment award with Addison Lee last November, to some extent Jason is going “back to the past” with some of his fleet.

Of course TfL will no longer allow a non-electric vehicle to be licensed after the end of this year, so operators are having to be creative when it comes to licensing. And that means having to license some cars outside London.

“We just got our Castle Point license – mainly as a back-up,” Jason says. “We do really believe in sustainability but we have kept two 20-plate diesel V-Classes. But we are getting comments from customers about 20-plate cars, so we will have to replace them.”

Castle Point, in Essex, has become a good alternative option for licensing – Jason is full of praise for its customer handling and fast response to enquiries. “I had a question for Castle Point, so I rang

profile: Belgraves

up and got straight through to the right person – that never happens with TfL.”

There’s also the question of cost. “We have just renewed our TfL license at a cost of £6,000 for up to 20 vehicles. Our Castle Point one is £400, for unlimited vehicles,” Jason says.

He’s at pains to stress that Belgraves is not planning to transfer all its cars to Castle Point. Rather it will simply hold dual licenses. “We’ve just got the Castle Point license as a back-up – a good thing to have in your pocket,” Jason says.

Belgraves may have been an enthusiastic early adopter of EQVs, but the electric MPV still has range limits that won’t do for some jobs. “There isn’t an alternative to V-class. For long-distance jobs, the only viable model is a diesel V-Class. If we can’t license new ones in London, I have to go somewhere else,” Jason says. And it’s not simply a case of keeping older diesels on the fleet. Some clients demand cars no more than three years old. So cars only bought in

CONTINUED ON PAGE 20

Tyre issues

Punctures are an occupational hazard for anybody driving in London. Potholes, traffic restrictions and low-profile tyres on big rims are a combination likely to result in frequent trips to Kwik-Fit.

The situation is compounded by the lack of sparewheels, or in some case, even a tyre repair inflator kit, in some modern cars. The Mercedes-Benz EQV doesn’t come with anything at all, and there’s nowhere to put a spare anyway thanks to the battery pack.

Inevitably, when one of Belgraves’ EQVs experienced a puncture, all the driver could do was call Mercedes-Benz’s help line. It took an hour to get through and a further two hours before a technician turned up.

That’s time off the road that a chauffeur company can ill afford. So Jason has come up with an in-house solution. “We spent £10k on wheels and tyres so we have spare fronts and rears for every type of car on our fleet.”

That means Range Rover, EQV, BMW i7, Mercedes S580e and V-class diesel. “We’ve always got one wheel and tyre ready to go – so within an hour we can get it on the car and back on the road.”

These are kept at Sutton, and if a car has a puncture, a replacement wheel can be sent out in a car equipped with proper jacks and drills. As well as easing driver frustrations, the facility is a good pitch to clients too.

FEBRUARY 2024 19

profile: Belgraves

“We were shortlisted for a big job with one embassy – and we got the job. I asked what did it for us – they said on your website you had lots of awards. Being a QSi winner does work!”
–Jason Ikpedjian

CONTINUED FROM PAGE 19

2022 will need to be replaced in 2025.

“We don’t want to run petrol or diesel cars for the sake of it,” says Jason. “But we can’t fulfil long distance journeys with EVs. And we have a disabled regular client who has to have two bench seats –and you can’t do that in an EQV. So we have to have vehicles that fulfil those criteria.”

There has also been some negative reaction to EVs from clients recently. “We had problems with one client when the driver was trying to charge up and missed a phone call. The client said ‘don’t send an EV again’. We are getting some pushback but we’re trying to portray EVs in a positive manner,” Jsaon says.

And that’s where the Castle Point license comes in handy. The Deregulation Act means there is no problem with private hire vehicles registered outside London doing jobs within the TfL area – for the same reason Wolverhampton-licensed minicabs crop up in other cities all across the UK. “Clients don’t care where the car is registered,” Jsaon says.

Jsaon is in favour of national licensing standards for private hire, which would mean there was no issue with car and driver licensing anywhere in the UK. “We recently couldn’t employ a driver to do a job because he was licensed in Birmingham, not TfL. National licensing would fix that,” he says.

It would also stop TfL demanding cars be festooned with warning notices and complaints procedures. “We don’t need ‘no smoking’ signs

– we tell clients they can’t smoke in the cars.”

In contrast with Jason’s positive experiences with Castle Point, TfL’s customer care is “appalling”, he says. He embarks on a long tale explaining just how difficult it was to renew his operator’s license – a chaotic tale of sending documents repeatedly with very poor response, resulting eventually in a direct phone call to the head of licensing.

“You can’t call, have to email – but we had no response in 30 days. TfL is our regulator and we cannot communicate with them. I almost had to sue because we had no license the day before we had jobs,” he says, exasperatedly.

Even getting a new drivers’ app was an overly complicated procedure, taking two days to fill in a 1,500 page document, much of it repetitive and irrelevant. “TfL is a big thing for everybody at the moment,” he sighs.

With clients wanting a relatively new fleet, Belgraves is frequently trading stock. “We don’t do a huge amount of mileage – roughly 20,000 per year,” Jason says. This means there are plenty of takers for cars leaving the fleet – providing replacements can be found.

The relatively low mileages mean, unusually for a chauffeur fleet, Belgraves can get a lease deal for the cars, though it’s not without its problems – not least the admin charges for parking tickets and restricted zone transgressions – something that goes with the territory when chauffeuring round the City for security clients.

“We work with some security offices that will pay the tickets – but won’t pay admin fees – and have been getting admin charges of £30 per ticket from leasing companies. If you get a lot of them it adds up.”

Why such low annual mileages? “A lot of our work is in central London – and that means we we could have a car sitting outside a hotel all day, waiting for our client.

Hotels are becoming an important part of the client mix for Belgraves, and an area with potential for growth. “Hotel work offers good continuity of work for chauffeurs and good exposure for Belgraves in the back,” Jason says.

Belgraves is already working with the The Lanesborough, as well as other super-luxury hotels, mainly in Knightsbridge. “We’re targeting hotels in a specific areas as we can place cars nearby, which means we can get to any hotel within 5-10 minutes.”

At present, hotel work is only about 10% of the mix for Belgraves. The biggest customer bloc is middle eastern clients (40%), followed by embassies (25%), with the remaining 25% spread among corporate clients, security companies and private families.

Sustainability is a big issue for all these groups –especially hotels and corporates – and that means having to do things like replace plastic water bottles with reusable vessels made from recycled aluminium.

“There are still some things we want to do, including offsetting all our emissions to the extent where we become carbon-negative, which would justify running non-EVs on the fleet.”

FEBRUARY 2024 20
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HAS THE EV REVOLUTION HIT THE ROCKS? PERHAPS NOTHING SO dramatic, but the market does seem to be slowing. Natural growing pains, perhaps, as the first wave of early adopters have made the switch, and the next wave of potential buyers may prove harder to convince.

Part of the problem is the range of vehicles on offer. Most manufacturers have started with premium EVs, hoping the higher sticker price will pay off the huge investment in product development more rapidly. There’s not a lot of choice at prices under £35,000.

But this creates a hole at the bottom of the market. Many potential EV buyers can’t find anything that’s affordable, and so long as the established manufacturers chase the top end of the market the market for smaller and cheaper cars goes unserviced.

The car business, like nature, abhors a vacuum. And if established manufacturers won’t tackle the growth potential lower down the market, new entrants can find a space to exploit.

And in the electric vehicle market, there are no shortage of new entrants. And, perhaps worryingly for the established automakers, they’re coming from China.

There are still executives in the car industry who can remember the growth of the Japanese in the 1970s, and the Korean automakers from the 1990s. Companies such as Nissan and

Hyundai started from a low base and built slowly to a strong position. But China is different –especially when it comes to EVs.

The Chinese electric car market is already huge – around 8 million cars last year, accounting for around 25% of Chinese car production. Thanks to lower costs and a focus on affordability, the average EV in China cost around €32,000 in 2022, compared to an average of €56,000 in Europe.

And the leading Chinese EV brand is the one whose car we’re testing here – BYD. BYD is no minnow. Launched in 1995, its main business is batteries. There’s a fair chance that you own a device – a phone or a laptop – powered by a BYD battery. And BYD is a substantial car maker too. Forget Tesla – the biggest EV maker in the world is – you guessed it – BYD. It was on course to deliver more than 2 million EVs in 2023 (it sold 1.79m between January and August) and it’s the fourth-largest car brand in the world.

So its arrival here is something that needs to be taken seriously. Forget the faltering steps BYD took 15-20 years ago, when it showed up

CONTINUED ON PAGE 26

first drive BYD Seal Design RWD FEBRUARY 2024 24
first drive 25 FEBRUARY 2024
delivered
Mark Bursa

first drive

CONTINUED FROM PAGE 24

at European motor shows with big ideas and underwhelming vehicles. BYD has used the intervening years refining its products and. Crucially, tailoring them for European tastes.

The BYD Seal, on test here, is the third BYD model to be launched in the UK, following the Atto 3 compact SUV, a direct rival to the Kia Niro and VW ID.3, and the BYD Dolphin, a compact hatchback that competes with another Chinese EV, the MG4, with a price tag of around £25,000.

The Seal is no budget model, though. Here is a stylish saloon car that is aimed squarely at the Tesla 3, as well as other new entrants such as the Hyundai Ioniq6. And judging from our first experience of the car, it matches them pretty well in terms of build quality and feel.

The BYD Seal is available in the UK in two trim levels: one with an 80kWh rear-wheel drive train and the other with an 80 kWh all-wheel drivetrain, with WLTP range of 323 miles (Excellence –AWD) and 354 miles for the RWD Design variant, which we are testing here. Very much on the money compared to key rivals, making, say, London to Newcastle possible on a single charge.

It’s not cheap – at £45,695 for RWD and £48,695 for AWD it’s head-to-head with the Ioniq6 at £46,260 and actually more expensive than the Tesla 3, which recently saw its price cut to £39,000. While BYD is certainly playing in the lower end of the price scale, this car is very much mainstream.

It looks the part – very much the modern, aerodynamic profile you’d expect from an EV.

Not as bland as a Tesla, but with a European minimalism to its styling. Hardly surprising as the Seal was designed by Wolfgang Egger, who has served as head of design at Alfa Romeo and Audi, before heading to BYD as design chief in 2017.

There’s a nautical vibe to the styling – not

for nothing are BYD cars named after marine creatures. The design has flowing lines inside and out, which makes the driving position easy on the eye. The cabin is dominated by two digital displays – a large, 15.6in central screen that has a very neat trick – it can be rotated 90 degrees at the push of a button from landscape to portrait format, giving a bigger map view or allowing a top/ bottom split screen.

The system is intuitive and easy to use, once you get used to the menus. Some functions are rather buried – for example the heated seat controls. It has neat features such as a Spotify button to access streaming services as well as DAB radio. A smaller 10.3in digital dash panel can also be used to control the infotainment, via steering column buttons.

Apple CarPlay and Android Auto are available, but only through a wired connection. The installation is a bit crude, and you lose some of the system’s functionality on CarPlay, including the rotating screen.

On the centre console there are two wireless charging docks for mobile phones. The position can be adjusted and angled for a better view of the phone screen.

The drive selector (simple DNR switch) is also on the centre console, and is surrounded by a number of buttons and dials allowing simple control on drive modes, radio volume, screen demist and heater fan. The Tesla-style all-on-thescreen approach has rightly been ignored.

Usability is matched by a very smooth on-the-road performance, with precise handling, flat cornering and very little

FEBRUARY 2024 26 BYD Seal Design RWD
data price as tested £45,695 warranty 72 months / 93,750 miles batterywarranty 96 months / 125,000 miles ved A performance powertrain Battery-electric transmission Single-speed auto, RWD batterycapacity 82.5kWh power 313PS torque 359Nm 0-62mph 5.9sec topspeed 111mph onboardcharger 150kW DC electricrange 354 miles [wltp] acchargingtime 8.6hr [0-100% at 11kW] dcchargingtime 37min [10-80% at 150kW] co2 emissions 0g/km [wltp] dimensions length 4,800mm width 1,875mm height 1,460mm wheelbase 2,920mm turningcircle 11.4m loadspace 490 litres

cabin noise, as you’d expect from an EV.

The rear seat is a three-seater bench, with a built-in folding centre armrest – the car is wide enough for three, but a lot more comfortable for two.

There’s a sizeable 402-litre boot as well as an additional 53-litre ‘frunk’ under the bonnet. You could use this wisely to store the two substantial charging cables that are provided.

BYD is primarily a battery maker, so it’s no surprise to find a fair amount of innovation in the powertrain. For a start, BYD’s batteries are not the same as the nickel-manganese-cobalt combination used in most other EV batteries. Instead, BY uses a lithium iron phosphate (LFP) battery, which contains fewer rare earth materials, including no cobalt, the mining of which has attracted much criticism.

BYD also claims the technology has a far lower risk of thermal runaway when damaged, as well as a longer life that is not affected by being fully charged or discharged – so you can happily charge to 100%, not 80%. On the downside, you need a bigger and heavier unit for the same number of kWh, and they can’t charge as fast as some other batteries. This makes the Seal quite heavy for its size – the AWD version is more than 2.1 tonnes, almost 400kg more than a Tesla Model 3.

The BYD Seal offers an 11kW 3-phase on-board charger for AC home charging, and can be fast charged with a maximum 150kW, allowing the battery to be charged from 30% to 80% in 26 minutes.

BYD calls its batteries ‘Blade Batteries’ thanks

to their flat, elongated design. BYD also claims this improves the structural rigidity of the car in the event of a collision.

The batteries are integrated into the bodyshell – BYD calls this ‘Cell-to-Body’, and it integrates the battery pack’s top cover with the traditional body floor structure, forming a sandwichlike composition made up of the top cover, the Blade Battery and the tray. In addition, the CTB

verdict

Tarchitecture uses a high-strength honeycomb aluminium panel structure, further enhancing vehicle safety. The Seal has been awarded a 5-start EuroNCAP crash rating.

CTB reduces the size of the battery pack volume, allowing the Seal’s body to be 10mm lower that if it had used a conventional battery pack giving better aerodynamics and more cabin space.

he BYD Seal iS the firSt ChineSe BranD Car to proviDe a real alternative for private hire operators looking to buy a mid-sized electric saloon. And it is a proper car-shaped car, not a faux-SUV, which will enhance its appeal within the private hire market.

It’s pitched as a premium product, though really its competitors are the likes of Hyundai, VW and Tesla. It’s stylish, without breaking any moulds, and build quality is every bit as good as established brands – though it remains to be seen how durable the car will be in service.

While Chinese brands are expected to grow sales from the bottom of the market, the BYD Seal is very much a mainstream car, and it’s priced accordingly. In fact the Tesla 3 undercuts it, rather than the other way round.

We like the fact that BYD has addressed some of the concerns that may be putting off car buyers. There is no Cobalt in the battery pack, for example, and the batteries are less liable to burn uncontrollably if they are damaged in a serious crash.

On the downside, the batteries can’t charge as fast as a Tesla (250kW) or a Hyundai (350kW), though in practice, if you can get a 350kW charger to charge at a stable 150kW, it’ll recharge as fast as it can, and you won’t be stopped for much more than 40 minutes.

BYD is a company that did most of its learning over the past 28 years in its domestic market, and as a result, its first tranche of export models are highly competitive. There are no supply issues, and BYD wants to attack all sectors of the market. An impressive new entrant.

FEBRUARY 2024 27 first drive

Winning big

road test FEBRUARY 2024 26
Mark
Bursa

THE LEXUS ES300H SPRUNG ONE of the big surprises at the 2023 Professional Driver Car of the Year awards, winning the Executive Car category by a handsome margin.

The surprise was that the cars it beat were electric vehicles, notably the 2022 winner, the Genesis G80, and the 2022 runner-up, the Mercedes-Benz EQE. Here was the chauffeur sector sending out a clear message – we want to be green, but we also want something that works for us.

The G80 and EQE are undoubtedly fine cars, but that’s not the problem. The

chauffeur sector is shifting. Long-distance work is now a major part of the mix, with initiatives such as Blacklane’s city-to-city scheme driving demand, while expensive and unreliable train travel has created the opening for car services to offer door-to-door business trips at a similar cost.

Even if today’s electric cars can handle trips from, say, London to Manchester or Leeds, there’s still a problem with the infrastructure. It’s not always easy to find a reliable rapid charger, especially if you’re under time pressure. And it’s not as cheap as it perhaps ought to be.

With a hybrid such as the Lexus ES300h, the infrastructure issue melts away. The car uses the same basic Toyota hybrid system as a Prius, so plugging in to charge is simply not part of the process.

continued on next page

FEBRUARY 2024 27 road test Lexus ES 300h Takumi

continued from previous page

The downside of this technology is that Transport for London’s EV fundamentalism means you can no longer license a non-plug-in hybrid for private hire work, so if you wanted to operate in London, you’d need to get licensed outside the PCO area, for example with Castle Point council.

Regardless of issues surrounding the car’s powertrain technology, it’s clear that the ES300h is a very fine vehicle. The ES model is a fairly recent addition to Lexus’s UK lineup, having first been launched in 2018, but the nameplate has been around since Lexus launched in the US in the late ’80s, when the original ES250 provided sales volume alongside the luxurious LS range.

The original ES was basically a spruced-up version of the Toyota Camry – and while the ES has now reached its seventh generation, the current model still shares its basic structure with the current Camry, which was briefly sold here pre-lockdown.

The ES 300h is available with three trim levels: entry-level ES Premium Edition, performance-oriented F Sport and the top-ofthe range Takumi, which we are testing here. All have the same basic powertrain.

Last year, the ES range received a substantial facelift. The frontal design and “spindle” grille was revised and slimmer LED headlights were fitted. Inside, the main change was an upgraded multimedia system. This was long overdue – in the past, Lexus systems lacked the finesse and ease of use of systems supplied by the likes of Mercedes-Benz and BMW.

This has now changed. The new system offers crisp, clear graphics and a far more logical functionality, though touch screen is the order of the day, sadly. But the new multimedia system is more intuitive to operate and responds quickly to commands. New features include cloud-based navigation, improved recognition of voice commands and wireless smartphone integration using Apple CarPlay. A wired connection can be used for Android Auto.

Cloud-based navigation gives access to realtime road and traffic information for easier journey planning and avoidance of delays. It can also be used to access information on local fuel prices and parking.

From the driver’s seat, the dashboard appears less quirky, with a centrally mounted 12.3in BMW-style flat panel satnav screen. Below the screen are separate buttons for climate functions and basic sound system functions, so you’re not having to scroll through menus just to turn the temperature up a degree or two, or change the radio station. A full colour head-up display comes as standard

on the ES Takumi spec car we’re testing here.

The centre console has been revised, providing two cup holders and USB-A and USB-C ports for playback and device charging respectively. The wireless charging tray has been moved from inside to outside the console box. The gearshift is still positioned on the console.

In the rear, a longer wheelbase for the seventh-generation ES means there’s ample rear legroom, And despite a low stance, there’s ample headroom thanks to a lower hip point and carefully configured headlining. Wide doors mean access is not a problem. The feel and finish is up to the standard of class-leaders such as the Mercedes-Benz E-Class and BMW 5-series.

The driving position in the ES has been refined with a more natural steering wheel angle and revised pedal positions. The steering wheel itself is borrowed directly from the rangetopping LS.

As well as ergonomics, Lexus has paid a lot of attention to making a quiet cabin, again using the LS as the benchmark. Extra insulation, and wind-tunnel testing to avoid wind noise from mirrors and wipers has played a part in cutting cabin noise.

This is essential with the Toyota hybrid system, as anyone who’s driven a Prius will tell

you. The CVT transmission tends to “boom” when you accelerate hard, until the CVT settles down and the revs die down.

On the ES, this is certainly less prevalent than on other Toyota and Lexus models – it’s better than on the new Lexus LM MPV that we tested recently, for example. The improvements are partially down to software upgrades within the hybrid control system, which aligns engine speed more closely with vehicle speed, reducing the “rubber band” feel commonly associated with hybrid systems.

A new 2.5-litre 6-cylilnder engine helps add smoothness too, as well as a redesigned transaxle. The hybrid system gives a total power output of 215bhp, and Lexus claims a combined cycle fuel economy of between 52.3mpg and 53.2mpg. On test we achieved a creditable 42.0mpg at an average speed of 26mph. In urban conditions only, the economy was better at 45.1mpg at 19mph.

Powertrain revisions have also brought loadspace improvements. The nickel-metal hydride battery that powers the electric motor has been relocated from the boot to underneath the back seat. This was made possible by a 120mm reduction in the height of the battery and the adoption of a more compact cooling system. As a result, boot space is now 454 litres.

test FEBRUARY 2024 28
road

Asurprise winner? perhaps not as surprising as you might expect. this is a very fine car, with levels of refinement and comfort that are right up there with the best in the executive class. And it’s hardly surprising that chauffeurs are looking to stick with a more conventional powertrain given the issues surrounding EVs and their charging infrastructure. Until major improvements are made in terms of charging availability and reliability, never mind speed, professional drivers are going to kick back against being forced into EVs – especially when viable alternatives such as the ES300h are available.

There’s also the question of affordability. The new BMW i5 we tested last year weighed in at £89,000 on the road. It’s an impressive car - but the starting price for the ES300h is less than half that, at £40,000. Even the top-line Takumi version we tested here is only £56,365.

Even if there was a marked running cost advantage of going electric (and there isn’t if you have to use the charging networks), you’d have to do a hell of a lot of miles to make up the price differential. And range anxiety is not an issue. You can’t plug in at all.

We achieved 42mpg on mixed motoring, and as the car runs on petrol, there’s a further saving over an equivalent diesel (currently around 8p a litre, according to RAC data).

The elephant in the room for London chauffeurs is, of course, TfL’s refusal to license cars that are not “zero emissions capable”. This means it’s OK to license a PHEV, even if you never charge it up, but not a so-called “self-charging” hybrid such as the ES300h.

It’s nonsense, but you can find ways round it – there are other licensing authorities that will allow you to register the car as a PHV, and under the Deregulation Act there is nothing to stop you from working in the capital without returning to base after each job.

FEBRUARY 2024 29 road test Lexus ES 300h Takumi
verdict data price as tested £56,365 warranty 36 months / 60,000 miles warrantyextension 10 years / 100,000 miles insurancegroup 31E-36E ved G performance engine 2,487cc 4-cyl petrol electricmotor AC synchronous transmission E-CVT auto, FWD batterytype 244V Nickel Metal Hydride systempower 218bhp at 3,750rpm torque 221Nm at 3,600-5,200rpm 0-62mph 8.9sec topspeed 112mph co2 emissions 121g/km [wltp] combinedeconomy 52.3-53.2 miles [wltp] dimensions length 4,975mm width 1,865mm height 1,445mm wheelbase 2,870mm turningcircle 11.6m fueltank 50 litres loadspace 454 litres

BMW i7 xDrive60 M Sport

Pump it up!

POTHOLES. THE 21ST CENTURY GIFT that keeps giving – or rather, keeps taking money from your bank account for replacement tyres.

The government fails to grasp the magnitude of the problem, while local authority budgets have been slashed, so they’re basically playing pothole whack-a-mole. As one gets fixed, another opens up. And so on.

It doesn’t help that cars are getting bigger and heavier – and electrification doesn’t help matters. The BMW i7 represents the pinnacle of EV technology – but at 2.7 tonnes, there’s a lot of weight on those low-profile tyres when you hit the pothole.

Sometimes you think you’ve got away with one. But the BMW knows it’s been wounded, and thus, even after returning home safely and settling down in front of the TV, I was informed via the BMW app that my front right tyre was deflating.

This caused me some angst, as I was due to visit a customer in London the next morning. So I went out to check – and sure enough, flat as a pancake.

What should I do? I knew the i7, like many modern cars, does not come with a spare – not even a space-saver. So I pulled up the screens on the digital manual for puncture repairs, which informed me that within the boot space was a tyre inflator canister that would plug the hole.

BMW

I’m dubious about these devices – they’re only good providing your sidewall is intact, and as I’d driven a good few miles on a deflating tyre, I was hoping the puncture was just a simple one. I followed the very easy instructions, connected the machine to the tyre and sure enough, it worked.

Within 10 minutes the tyre was re-inflated.

The next morning I left the house with trepidation – but I was pleased to see it was still inflated and there were no warnings from either the car or the app. I booked the car in for a replacement tyre near to where my appointment was and by that afternoon, we were back in the game.

The point to this whole story was that if this had happened when you were chauffeuring a client this kit would enable you to fulfil that journey safely. Add to that the benefit of not covering your well-tailored suit in grease and grime you would normally get from hauling out a spare from the boot jacking the car up, finding the wheel locking nut thing, calling on the strength of all the gods to loosen the wheel nuts and generating enough sweat to make a marathon runner proud.

Yes, it means you must replace the tyre as soon as you can, but come on, you are professionals and would be doing that anyway.

Elsewhere in this issue, you can read how Belgraves of London copes with the lack of spare tyres in the cars – it keeps one for each model at its office.

So if a vehicle has a puncture – even one that is beyond the capability of the repair kit – it can get a tyre out to the stricken car within the hour. No worries about the local Kwik-Fit being out of stock, or the mobile repair man being unable to get there for hours. Perhaps it’s something we should all consider doing.

30 FEBRUARY 2024
price £125,705 performance powertrain Battery-electric transmission Single-speed auto, AWD battery capacity 101.7kWh power 544hp torque 745Nm 0-62mph 4.7sec max speed 148mph electric range 367-388 miles [wltp] ac charging time 11hr [0-100% at 11kW] dc charging time 34min [10-80% at 195kW] on-board charger 195kW DC co2 emissions 0g/km[wltp] dimensions length 5,391mm width 1,950mm height 1,544mm wheelbase 3,215mm loadspace 500 litres running report
i7 xDrive60 M Sport

the advisor

Navigating the complexities of Labour’s potential Gig Economy reform

The polls suggest there will be a significant shift in political landscape, with the Labour Party winning the next election. Already, discussions surrounding employment rights and possible Labour reforms are taking centre stage.

Labour Party deputy leader Angela Rayner recently announced plans to introduce substantial changes aimed at reshaping the landscape of temporary staffing, gig working, and contracting. While the proposed reforms are ambitious and aim to protect workers’ rights, they also raise complex challenges, particularly concerning self-employed drivers and their engagement with UK operators.

Key among Labour’s proposals is the promise of dayone employment rights for all workers and a ban on exploitative zero-hours contracts, along with an end to what they term as “bogus self-employment”.

Gary Jacobs

Gary Jacobs runs Eazitax, an accountancy firm specialising in the taxi and private hire business eazitax.co.uk

While these intentions may be seen as noble, some may say they are just rhetoric. Labour is offering to fix what has been a multi-faceted, super-complicated grey area of legislation that we in the UK have been trying to get to grips with for decades.

One of the most challenging aspects of the proposed reforms is the eradication of what is referred to as “bogus self-employment”. Determining who is genuinely self-employed versus being misclassified by employers is a notoriously difficult task, and incredibly subjective, in reality.

The current tests in the UK rely heavily on complex case law, which can be challenging to apply to modern working arrangements, especially those involving self-employed drivers engaged in flexible workforces with constantly changing and evolving work dynamics.

To address this issue, I suspect that legislators might consider adopting a test like the one used in the US or the EU’s Platform Worker’s Directive. However, finding a clear and fair combination of tests has proven to be elusive even at EU level, indicating that implementing effective legislation may be a lengthy and intricate process.

Additionally, there’s a concern about the administrative burden and potential loopholes that could arise from a precise statutory definition of self-employment/employment. Labour’s proposal to increase “chain liability” risk, where entities at the top of a supply chain bear tax and employment liabilities, adds further complexity to the issue.

Let’s face it, IR35 implementation in the UK, rather than simplifying the relationship between personal service companies (one-man band limited companies), has put the onus on the contacting party to decide whether they are caught by IR35. In many cases it pushed people towards umbrella companies, which made the relationship more complex.

Labour’s focus on providing rights such as sick pay from day one raises questions about the practicality of such measures for short-term or infrequent workers. Moreover, the upcoming Right to Predictable Working Hours legislation, scheduled to come into force in September 2024, may already address some of the concerns raised by Labour’s proposal, suggesting potential redundancy or overlap in legislation.

Considering these challenges, one potential solution lies in establishing regulated “engaging organisations”, akin to guilds. These organisations could act as engagers or agents for self-employed, providing benefits such as pensions, holiday pay, and access to training and financial services from the outset of any engagement.

Matthew Taylor’s review proposed a similar idea to the Conservative government years ago, indicating bipartisan recognition of the need for such arrangements. Embracing this approach could help legitimise the gig economy while ensuring fair treatment and protection for workers.

In conclusion, while Labour’s proposed legislation aims to address long-standing issues of worker exploitation and misclassification, its implementation poses significant challenges. The complexities surrounding the definition of self-employment, the feasibility of day-one rights for all workers, and the need for effective enforcement mechanisms require careful consideration and consultation with stakeholders. Embracing innovative solutions such as regulated organisations could offer a way forward.

An accountant’s initial view on the tax implications of the Sefton case

In the recent Uber Britannia vs Sefton ruling, the judge explicitly stated that the VAT consequences of changing the operating model were irrelevant to the case. This meant that the court’s decision did not hinge on potential changes to the VAT obligations of ride-sharing platforms.

This legal victory for Uber emphasised that the case was primarily concerned with whether Uber and others are indeed private hire operators, not tax implications.

Our view is that only HMRC in individual cases or national Government legislation can change the VAT environment, not regulators. So, for the time being, carry on with your existing VAT model. However, we suggest that everyone should have a well thought-out and defendable VAT model, as private hire is still always under scrutiny.

I’m also not saying it will not be under further scrutiny in the future, but even after The Sefton case please do not rush to change anything. A tech company’s ride hailing platform is not the traditional PH model. Let’s see what our government has in store for us first.

As for the ruling, I feel that Private Hire Operators have always acknowledged at least a ‘duty of care’ of the passenger, so the move to principal isn’t such a big jump. However, it is an interesting use of the word ‘principal’ and could be conceived as an attempt to imply tax obligations. There were other words that could have been used such as “primary” or “main” to avoid the confusion. Only time will tell.

FEBRUARY 2024 31

the knowledge

The downward spiral

THE

RECENT TREND

WITHIN THE industry of a gentle slide in volumes against the previous year continues. January has been a quietish month and a slow start to the year.

Don’t get too excited if February hits last year’s figures as there is an extra day thanks to the leap year providing a 3% benefit. March will fail to reach its full potential given that Easter is in March this year. Therefore, leap year or not, there won’t be many companies that close their first quarter ahead on volumes against last year.

Save a minor miracle, it is difficult to see how this year can pan out any differently to last year – but where does the downward slide end, and how?

The old saying that you can tell the strength of the economy by how busy barbers and cabs are seems to be partly true. I say partly as in my area we have never had so many barbers and they all seem to be busy. Cabs, on the other hand, seem to be in the perfect storm: less travel, working from home, and the impacts of the cost-of-living crisis and recent fare increases all suppressing demand.

A LESS RELIABLE SERVICE

To analyse the problem further I think we need to add to the list above the fact that our industry is a whole lot less reliable than it was. Multi-apping has spurned a ‘Wild West’ approach to the way drivers have operated over recent times. A booking is accepted, then a better one comes along, and the first one is fired back.

On the street, the customer can see available cabs on the app, receives confirmations, receives cancellations and repeats the whole process. Many are genuinely mystified as to why they cannot just order a cab, it arrives, and they get whisked home. That after all was a reasonable expectation.

The multi-app concept appears likely to stay in place and potentially become more widespread as the recent guidance appeared to endorse it based on the rules for cab signage. The days of phoning or using the local company’s app and being almost certain that a cab would turn up more or less when you were told it would appear to be over.

Instead, our industry is in many places already in a virtual dealing room where ruthless players seek out the most lucrative bookings, bruising customers on the way and in areas where this is not the case it is on the way. While there is a short-term benefit to the more ruthless or being polite entrepreneurial drivers, the impact on the industry could and may already be huge.

COLLATERAL DAMAGE

When I go out to dinner with my wife it would be nice to be able to get a cab, have a drink, have no worries about driving and be able to get a cab home. But if we find ourselves the last to leave and possibly waiting outside a locked-up restaurant in the forlorn hope that our booking might actually end up being honoured before we have to start ringing relations to get out of

bed to pick us up, we are not going to be happy.

Well guess what – that is only going to happen once and the next time we go out one of us is going to be the designated driver, because at least that way we can actually get home. Repeat this story by however many people are finding themselves stuck without a cab all over England and Wales on a Friday and Saturday night and just watch the volumes slide. The current very gentle slide will turn into a ski slope.

So what is the answer? Some councils have suggested a requirement for operators to report the drivers on their fleet who refuse/return the most journeys each month so they can assess whether they are fit and proper to continue to be licensed. One council suggested that they view these practices as public safety issues which in fairness they may well be.

Others have questioned whether it is the operator who is at fault for accepting a booking and then not supplying a vehicle. But is this a blame game scenario? Have we moved culturally from a place a booking, get a quote, get a cab process to a highest bid wins scenario?

SOLD TO THE HIGHEST BIDDER

Perhaps the industry has moved from rigidity and reliability where loyal customers were looked after to a highest bid wins situation?

Some years ago, in New York I saw a demonstration of some software that was developed for just this scenario, Customers booked and indicated that they would pay standard fare, double fare, fare plus $10 or whatever.

The driver set his PDA up as accept any fares, accept only double plus fares etc. The concept clearly being customer and driver operated what was in effect an auction system. Our US competitors have taught us that customers can be very flexible when the chips are down and they need to get home. I am talking about surge pricing.

While it would be a brave company that implemented the software I saw and described above at the moment maybe we should be looking towards these kinds of features. The long-term effect on the industry is difficult to gauge with any accuracy, but I think we can agree that basic economics suggests that as prices rise, volumes reduce.

Perhaps if we have to move to an auction type system fares and volumes will reach an equilibrium. The alternative approaches of licensing action are unlikely to be effective while the Deregulation Act is in place as operators and drivers will simply move their licensing arrangements to a more flexible or less service-orientated licensing authority.

A dynamic auction-based system may offend certain English sensibilities, but surge pricing has managed to avoid any fatal damage so why not? The concept requires fare setting to effectively move from the operator to the driver and customer but if it means more bookings are covered and drivers are happier maybe it is worth thinking about more seriously.

FEBRUARY 2024 32

Make January Great Again

CHRISTMAS, LIKE DIWALI, is the festival of light, a celebration designed to get us through the short, dark winter days by killing and dragging a pine tree indoors and letting the kids heap shame upon the tree by hanging baubles all over it.

The festive suspense is then fleshed out through to New Year’s Eve, a night full of optimism, hope, of out with the old and in with the new. Fresh ideas! Cheers!

Then bump! Back down to earth we thud as soon as we return from the ritual New Year’s Day family walk that sees us slip into January with all the enthusiasm of a Morrissey interview.

Everyday problems from the operator’s point of view...

Then, to compound matters, they don’t think it through. Because some miserable killjoy decides we should have something called ‘Dry January’ as absolution month in which to atone for our Christmas season sins, (most of us don’t over indulge much more than a busy-ish weekend topped off with a Sunday roast).

Before the last strains of Auld Lang Syne fade away behind the fireworks and party-poppers we’ve consigned January into a depressing month where town centres turn into ghost towns. Punters shy away from ‘nipping for a pint’ or going to the cinema or theatre or for a game of snooker.

Hypocrites one and all – you for following like lemmings and them for making us feel like overweight alcoholics overnight. Blimey!

Television adverts spent four months encouraging us to spend, feast, drink and be merry, (as long as you remember to order in a jumbo box of Rennies* because reflux gonna get ya!). Now we enter the new year with TV insisting we are in need of a colonic irrigation and the Jane Plan diet. Drink micro-biotics (yoghurt on the turn) while collecting bits of a model car, stuck to a weekly magazine, that end up costing roughly the same as your first proper car did.

“Oh, and January is such a long month, isn’t it?” Nope, it is a standard 31 days, total. It just seems longer cos you’re gagging for a glass of wine and have been fasting for four days! The January gods conspire to make the first month of the year a nightmare for our industry. It’s utter madness. And they’re now even looking to curtail our football enjoyment in the form of a winter break.

Enough!! In election year, I am

proposing a few changes to counter this: Firstly, we swap January with February, not in name but in length. January becomes the 28 day month with Feb getting the ‘long’ 31 days. Pay day comes quicker for all those paid monthly and we all benefit from a 29 day month once every four years.

Next, I will introduce a whole new approach to the new year so please welcome in and embrace ‘Soggy January’. Soggy January promises to be the polar opposite to Dry January’s pleas for abstinence. This is a challenge set to finish off all those bottles of plonk that haunt your IKEA drinks cabinet.

The impulsive Christmas purchases encouraged by shiny TV adverts and your whiff of nostalgia for past festive celebrations. Like, Harvey’s Bristol Cream sherry bought for Aunt Jen, who had one glass and went to bed before the Bond film.

The Jägermeister, purchased because your daughter was turning up from Uni with a few mates then drank only Earl Grey tea and water. And, of course, the Limoncello, purchased after you gave in to its luminous lure while ‘just having a look’ in Venice airport duty free, 2004.

To business, all industry conferences and award ceremonies to be held in the new look, much improved, January. Admittedly, this type of work holds little appeal to most of us as it consists of mainly airport transfers and pick and drops either end of the day, all devoid of tips but, it is work. Also, this gets ‘the suits’ out of the way so they don’t clog up the busy spring/summer period.

All licensed taxi and private hire drivers to charge airports £10 for dropping their customer off at their premises (plus £1 for every extra minute queuing to get into Heathrow T3). Also, all Hotels to scrap ‘Hotel Car Service’ unless they’ve applied to become an operator and jumped through the same hoops we have. Same for cruise companies: make your profit from sailing the seas and leave the cars to the land-lubbering professionals.

“The Jägermeister, purchased because your daughter was turning up from Uni with a few mates then drank only Earl Grey tea and water. And, of course, the Limoncello, purchased after you gave in to its luminous lure while ‘just having a look’. at Venice airport..”

Listen, January is behind us. So, please, be positive, be safe and lets hope business picks up for us all soon. I mean, even the ProDriver Mag is back in your in-box so things look better already!

n Kevin Willis runs Chirton Grange, contact@chirtongrange.co.uk –07725467263s

the insider
Kevin Willis
FEBRUARY 2024 33

Car of the Year Awards 2024

Judging day 2024

Tuesday, August 20, 2024

Epsom Racecourse, Epsom Downs, Surrey

Join us this Summer for your opportunity to test and evaluate the latest cars for the taxi, private hire and chauffeur industry.

As a Professional Driver Car of the Year judge, you’ll be able to drive around 50 cars – and score them

on 17 points that encompass everything from looks to comfort, driveability, passenger space and even the boot. Your scores are used to help us choose our six category winners – and we present the awards at our legendary Professional Driver QSi Awards event later in the year.

Why not reward your best drivers with a day out too? Their expertise and knowledge will be very valuable! Click the link below to become a judge or you can also send an email to editor@prodrivermags.com and we’ll make sure you’re on the list.

To register: https://www.prodrivermags.com/car-of-the-year-home/

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