To ask the Secretary of State for Transport, if she will have discussions with the Chancellor of the Exchequer on the adequacy of the level of VAT charged on fares for (a) demand responsive transport and (b) other public transport services that use private hire vehicles with fewer than 10 seats.

The government has consulted on the potential tax impacts on the sector and its passengers of court judgments on the interpretation of private hire vehicle (PHV) legislation. The consultation considered the VAT treatment of PHVs when used for conventional services and demand responsive transport. The Department for Transport and HMT are considering the responses to the consultation and will respond in due course.