The Budget, published by HM Treasury on 28 October 2026, says the private hire market has grown and changed quickly in recent years, and that this has shown up differences in how larger operators are taxed. The government's answer is to make larger operators charge VAT on the whole fare, as already happens with most other goods and services, while smaller operators are protected. The key question is where the line is drawn. The government says it will shortly publish a consultation on the yearly fare turnover above which the new rule applies, and £50 million is its preferred option. The Treasury's Budget costings document describes the measure as covering operators with annual fare turnover over £50 million, starting on 2 January 2028. The Budget papers talk about private hire (minicab) operators and do not mention hackney carriages. Nothing changes straight away: the consultation comes first, and the details could still change after it.