The Treasury has answered MPs' questions about the plan to charge VAT on the full fare for larger private hire operators. Conservative MP Richard Holden asked what assessment the Government had made of the effect on passenger fares, drivers' earnings and the number of private hire drivers. Treasury minister James Murray answered on 10 November 2026. The answer repeats that, from 2 January 2028, operators with annual fare turnover above a set threshold will be treated as liable for 20% VAT on the full value of their fares. A consultation to confirm the threshold will be published shortly. The minister said the change puts no new VAT obligations on drivers and does not change their employment or worker status protections. He did not give any estimate of the effect on fares or driver numbers, saying decisions on fares, commission rates and other commercial arrangements are for individual businesses.