Greater Manchester is stepping up its commitment to support locally licensed taxi drivers, with plans to launch a new £4.45m fund to help them upgrade to cleaner vehicles.

The proposed Private Hire Vehicle (PHV) Support Fund would offer private hire vehicle owners, licenced with one of the Greater Manchester authorities, a choice of a £5,000 interest-free loan or a £1,000 non-repayable grant to support the transition to cleaner, lower-emission vehicles.

It’s all part of the city region’s ongoing plan to improve air quality and support its taxi trade to become the safest and most trusted in the country.

Last year, the taxi trade said they wanted more support to switch to modern, cleaner vehicles during a major three-month engagement, as part of Greater Manchester’s ‘Backing Our Taxis. Local. Licensed. Trusted’ campaign.

The  fund – which was initially outlined in November’s meeting of the Greater Manchester Combined Authority (GMCA) – will feature in this year’s transport budget, set to be considered by leaders in February.

Approximately one in 10 (around 1,300) private hire vehicles currently licensed in Greater Manchester are not compliant with emission standards. It’s expected that, if approved by the GMCA, the fund could open for applications in May.

The new private hire fund would complement the existing £8 million fund to help hackney (black cab) owners to make the switch. Launched in December last year, over 190 drivers have already applied to that fund, with over £1.5 million of non-repayable grants already approved. Earlier this month, an owner became the first to successfully upgrade to an electric LEVC vehicle through the fund, marking a milestone in the city region’s journey towards cleaner, greener transport.

Mayor of Greater Manchester, Andy Burnham, said:

“We are leading the way with an investment-led approach to clean air that supports people rather than penalising them.

“Taxi and private hire drivers are a vital part of our transport system, and we want them to be amongst the cleanest, safest and most trusted in the country.

“We recognise the challenges faced by drivers, and we’re determined to support them as we move towards cleaner air, while ensuring high standards and public safety.

“This funding – and that for black cab drivers – gives real, practical help to those who want to upgrade to cleaner vehicles. Combined with our call for long overdue national reforms, it will help level the playing field and ensure our city region continues to raise standards across the board.”

The proposals further demonstrate Greater Manchester’s commitment to improving air quality, with the latest update to the Air Quality Administration Committee detailing how the city region is delivering all the measures agreed with government to meet legal limits for nitrogen dioxide (NO₂) and without the need for a charging Clean Air Zones. It includes introduction of more electric Bee Network buses and electrification of bus depots.

Last year, Greater Manchester’s 10 local authorities also took forward plans to give taxi drivers more time to upgrade their vehicles, extending the emission compliance date from the end of 2025 to at least 31 December 2026*.

Alongside supporting drivers, the Mayor and leaders are also calling for licensing reform to tackle ‘out of area’ operations.

Greater Manchester is working with Transport for London (TfL) on an amendment to the government’s English Devolution and Community Empowerment Bill, currently in the House of Lords, aimed at addressing out-of-area licensing.

This would see journeys that take place in regions like Greater Manchester carried out by locally licensed operators, vehicles and drivers – instead of the current system where PHVs can apply for a licence from any authority, each with their own requirements, processes and resources.

(Picture: TfGM)