​Newry taxi firm facing ‘turmoil’ over VAT shake-up

​The Department for Infrastructure's new proposal, influenced by a recent court ruling in England and Wales, suggests changes could result in a 20% hike in taxi fares.

Cathy Mallie of Clanrye Taxis, shared her concerns about the local impact in a recent Stormont committee meeting.

She noted the struggle to maintain a sufficient number of drivers, especially in rural areas.

"We have lost 50% of our drivers since Covid-19, and we have never recovered from that," she disclosed.

She said she has found it difficult to keep drivers in the industry, with all of her current staff over the age of 60.

Cathy warned further changes would be "devastating".

"If this VAT element comes in, that will definitely call it a day," she told the committee.

"We financially couldn't afford to support the administration and the back offices, we wouldn't have the finances and we're really struggling and in dire straits at the minute, especially in Newry."

If Clanrye were to shut up shop, many people would be left with out a service they “rely on” she said.

"It's not the tourist side of things that we worry about, it's the local people and local runs,” Cathy continued.

"It's the woman who is going to get her pension, somebody going to the hospital for an appointment or the woman who wants you to take her 4 year old to school because she has a disabled child at home, it's the trust they place in us."

Ms Mallie also highlighted the potential existential threat to smaller companies if VAT obligations are enforced, describing the dire financial conditions many are currently facing.

The comments come as the number of active taxi licences in Northern Ireland has halved since 2014.

A spokesperson for Stormont's Department for Infrastructure said: "Officials are currently assessing what legislative changes may be needed to reflect and align with the recent court rulings and the minister will make a decision on this issue in due course."