Maximum taxi fares in Northern Ireland will increase by up to 19.5% in December

Maximum fares will increase by 9.5% during the day and 19.5% at all other times.

The increase is due to a lack of availability of taxis, particularly in the evenings and at weekends, which has led to concerns around public safety.

The two-tiered increase is designed to balance the needs of customers, including vulnerable passengers who are more likely to use taxis on a daily basis, with those of drivers and operators who face rising fuel costs.

The department said it recognises the impact of the current financial climate and the measures are being introduced to help the taxi industry and support the wider economy, while trying to ensure an affordable means of transport.

Regulations to allow the increases to be applied require a 21-day period before being implemented, meaning the increased fares will come into force on December 5 2023.

There has not been a devolved government in Northern Ireland for nearly two years due to the DUPs ongoing boycott over post-Brexit trading arrangements.

In the absence of ministers the decision to implement the fare rise was taken by the permanent secretary under the Northern Ireland Executive Formation Act 2022.

Hospitality Ulster chief executive Colin Neill said it was "understandable" that people would not want to pay more for their taxi in the lead-up to Christmas, but that a lack of availability of taxis was having a negative impact on the hospitality sector.

"It has been a long time since fares increased, and as everything becomes more expensive, fare adjustments are a reasonable measure for maintaining the viability of the taxi industry for the many individuals who depend on it," he said.

"We know that limited taxi availability during peak times for pubs and restaurants is exacerbating the ongoing crisis in the hospitality sector.

"Hopefully the rise in fares will go some way in addressing this issue by encouraging more drivers to operate during evenings and weekends and expand service coverage during busy periods.

"Overall, it is also important to highlight that we need a better transportation ecosystem across our towns and cities in Northern Ireland.

"This would include subsidised and extended bus services to support our night-time economy and ensure affordable transportation options for everyone looking for a safe route home throughout the Christmas period and beyond."

In August last year the department for infrastructure launched an eight-week public consultation over a potential increase in the maximum taxi fare tariff across Northern Ireland.

The consultation covered issues such as increases in fuel, vehicle maintenance/operating costs, depot fees and different fare bands for evenings/weekends.