Mike Bailey, CAVA Finance 0161 222 9599
News, Taxis

Earlier this year it was announced that new incentives were being introduced for taxi drivers, resulting in Electric Taxis being exempt from higher tax rates in order to promote the use of zero emission capable vehicles.


The Shadow Business Secretary, Rebecca Long-Bailey also recently announced that a Labour government would invest £5.8 billion into the UK’s automotive industry in a bid to accelerate the shift to EVs.

The proposal has been welcomed by those in the industry who feel this acknowledges the important role which fleets play in helping the UK to reach it’s zero emissions goal.


The Government has already backed a Euro 6 conversion scheme which will see NOx emissions reduced in major cities.

What are Euro 6 Standards?

The Euro 6 Standards were introduced back in 2015 and relate to environmental pollution caused by exhaust emissions. The issues lie in aging vehicles which produce more pollutants.


In an effort to reduce these emissions, standards have been introduced for manufacturers which mean they are required to meet these standards in order to sell their vehicles.


NOx is a pollutant caused by fuels such as petrol and diesel, there are limits in place as part of the Euro 6 standard. The older the vehicle and the higher the NOx levels, the higher the costs in terms of road tax.


We have previously looked into the ULEZ (Ultra Low Emissions Zone) which places daily charges on vehicles entering the zone, which are the highest pollutants, in a similar way to the congestion charge. Whilst taxis are exempt from the charges, as of this year all new taxis are required to be zero emission capable. From October 2021 we’ll see an expansion of ULEZs to more UK cities outside of the Capital. 



How are cars tested for emissions?

The tests are designed to reflect real world driving, with new tests being brought in last year. These focus on fuel economy and emissions, these tests are carried out on real roads as opposed to labs to ensure the tests are as reflective of real life as possible.


Taxis are at present, responsible for around 25% of NOx and are on their way to being the biggest source of transport pollution in London by next year.


There are however plenty of options for taxi companies looking to expand their fleets in a more environmentally friendly way. Companies such as LEVC are pathing the way for greener taxi manufacturing. They join Nissan as one of the world’s few purpose built electric and hybrid taxi manufacturers.


Not only will switching to electric vehicles be better for our environment but there’s now more and more charging points being installed across the UK which is helping to reduce fuel costs.


If you’re part of a taxi or private hire company and are looking to the future, CAVA can assist. We have access to a range of funders who are experienced in finance for both Hybrid and Electric Vehicles. Contact us on 0161 222 9599 to discuss further.