Residents have told Ceredigion County Council that a proposed seven per cent increase in taxi fares in the county would have a “negative impact” and put people under “additional strain” during a cost-of-living crisis.

Ceredigion County Council went out to consultation on a proposed rise in the cost of a taxi journey in the county after taxi firms called on the county council to raise fares amid concerns about the long-term sustainability of the trade.

The consultation set out options for a proposed rise, including a seven per cent blanket rise, as well as the suggestions from taxi firms.

Ceredigion County Council said the proposed increases “reflect rising costs and would make Ceredigion’s fares more similar to nearby councils like Carmarthenshire and Gwynedd.”

In a consultation report put before members of the Licensing Committee on Thursday, 18 June, the council said there was a “clear divide” between what taxi firms wanted and residents’ wish to keep the fares at the same level.

The main question posed in the survey was ‘Do you agree or disagree with the proposed Taxi Tariff increase?’

Of the 53 responses received, 62 per cent disagreed with the proposed taxi tariff increase.

The consultation report said: “The survey responses show a clear divide between concerns about the affordability of taxi fares for passengers and the financial sustainability of taxi services in Ceredigion.

“Many respondents recognised that taxi drivers are facing significant increases in fuel, insurance, maintenance, wages and other operating costs, with several arguing that fares have not kept pace with inflation since the last tariff review in 2022.

“While some viewed the proposed seven per cent increase as fair and proportionate, many within the trade felt it was insufficient to sustain businesses, retain drivers and maintain taxi availability, particularly in rural areas.

“At the same time, a large number of responses expressed concern that taxis are already expensive, especially in a rural county where long journeys are common and public transport options are limited.

“Respondents frequently highlighted the impact that further increases could have on vulnerable groups including elderly residents, disabled people, students, low-income households and non-drivers who rely on taxis for work, healthcare appointments, shopping and social connection.

“There were repeated concerns that higher fares could increase isolation, reduce accessibility and place additional strain on people already affected by the wider cost-of-living crisis.

“A recurring theme throughout the responses was the recognition that taxis are an essential service in Ceredigion rather than a luxury, particularly given the county’s rural nature and limited bus services.

“Respondents also raised wider concerns about the impact of fare increases on the night-time economy, town centre activity and tourism, while others warned that failing to increase fares sufficiently could lead to fewer taxis, reduced service availability and job losses within the trade.”

The report said that “fare increases may impact residents reliant on taxis, especially those without private transport in rural areas”, and “however, reasonable fare adjustments help sustain a viable taxi trade and ensure service availability.”