Bulk-buying low emission taxis

Meeting:

Mayor's Question Time

Date:

Wednesday, 11 June 2014

Reference:

Question 2014/1820

Main question

Darren Johnson

Thank you for your answer to my question 2014/1404. Will you please send me the advice your office has seen on state aid rules applying to bulk buying and leasing back of a fleet of taxis? Do these rules depend upon the size of the fleet and initial purchase? Would this apply if the savings to drivers who leased the taxis came from VAT registration and also from using the increased advertising revenue that a fleet of taxis could attract? Have TfL looked at ways of doing this that would be self-financing and involve no subsidy?


Answer

The Mayor

I've asked my team and TfL to explore a range of possible financial incentives to support the introduction of zero emission capable taxis. State Aid rules are complex and TfL is working with the Office for Low Emission Vehicles on their proposed application to the European Commission for approval of various possible schemes. That approval would enable us to deliver schemes far more effectively, without the constraints that otherwise apply, such as the 'de minimis' thresholds that may exclude granting public funds to fleets of taxis. TfL will continue to explore a wide range of supportive measures to encourage the introduction of new zero emission capable taxis as quickly as possible.