Transport for London (TfL) has won a legal battle against a minicab trade body’s objection to the increase in operator licence fees.

Last month TfL faced the Licensed Private Hire Car Association (LPHCA) in London High Court which was campaigning against increased fees for minicabs in the city.

Today the High Court ruled against LPCHA’s challenge.

In September 2017 TfL confirmed a change in the fees Private Hire operators are charged in order to manage the cost of licensing, compliance and enforcement activity.

TfL said that London’s private hire industry has grown from 65,000 licensed drivers in 2013/14 to around 114,000 today.

It argued that with this growth there was has been a substantial increase in the costs of ensuring operators fulfil their licensing obligations and in tackling illegal activity to keep passengers safe.

Previously private hire vehicle operators were divided into two categories a ‘small’ operator -with no more than two vehicles, and a ‘standard’ operator, operators with more than two vehicles, regardless of the size of their taxi fleet.

A so called ‘small’ operator would pay £1,488 licencing fee, lasting five years and ‘standard’ operator would pay £2,826 for a licencing fee, lasting for the same period of time.

The new TfL fee structure replaced this system and separated charges for private hire vehicles into eight different categories.

Licensing charges now range from £2,000 for a five-year licence for those with 10 vehicles or fewer, to £464,000 per year for the largest operator.

TfL said that this would ensure the licence fee structure for private hire operators reflected the costs of compliance activity according to the scale of each operator.

At the time TfL defended their decision.

However, LPHCA said increased operating fees would see London private hire operators with over 11 vehicles facing increased costs between £3,174 and £2,897,174 for a 5-year licence, which had previously cost just £2,826.

Commenting on today’s High Court ruling Steve Wright MBE Chairman of the LPHCA said: “ It is regrettable the LPHCA has needed to ask the High Court to determine the legality, or otherwise, of Transport for London’s new ‘Private Hire Operator Licence Fees’.

“Our challenge was founded on questions surrounding the sufficiency of information during the consultation and whether fees were set for an improper purpose.

“In handing-down its judgement today, we are disappointed the Court has found in favour of Transport for London.

“In light of the decision, and the ongoing impact on the wider trade, the LPHCA will focus its efforts elsewhere, by firstly seeking an open dialogue with TfL on a potential review of the current fees, now the overall regulatory impact is much clearer.”