Imposing a “taxi tax” on minicabs and private hire cars would strip disabled, elderly and vulnerable people of their independence and amount to a manifesto breach, the Chancellor has been warned.

Rachel Reeves is said to be looking at imposing 20 per cent VAT on minicab and private hire car journeys in her upcoming Budget.

Taxi firms outside of London do not have to charge VAT currently but the government is understood to be considering imposing a flat rate to bring more money into the Treasury. New Feature

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Critics argue this would unfairly penalise disabled people, and carers, who rely on specific private hire vehicles to get around.

Karl Turner, Labour MP for Kingston Upon Hull East, has written to the Chancellor asking her to

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