Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the Autumn Budget 2025 measures on VAT on private hire vehicles on (a) people with disabilities and (b) older people.

Private hire vehicle (PHV) services provided by VAT-registered businesses are, and always have been, subject to the standard rate of VAT (20%).

The Government’s announcement at Autumn Budget 2025 puts an end to the exploitation of a VAT administration scheme, designed for the tour operator sector, by a small number of large private hire vehicle operators seeking to pay a lower rate of VAT than others.

This won’t affect smaller operators outside London whose drivers contract directly with passengers, or black cabs, neither of which have attempted to exploit this scheme.

By making sure all operators pay their fair share, the Government expects to raise around £700m of tax revenue each year that it believes should already be being paid. Protecting this revenue is part of the Government’s tax reforms which have enabled us to protect payslips, cut energy bills and reduce borrowing.