Uber prices set to soar as ministers introduce VAT crackdown

Uber and Bolt face price hikes as the UK government implements VAT on ride-hailing services, ending a tax loophole that allowed them to pay less VAT than traditional black cabs. This change, effective January 2, 2026, aims to level the playing field for taxi drivers and is expected to generate £700 million for the Treasury by 2028. However, industry leaders warn that this could worsen the cost of living crisis, with fare increases of up to 15% anticipated, impacting demand in the hospitality sector as well.