Cabbies have demanded Chancellor Racheel Reeves close a tax loophole used by Uber.

Taxi drivers have written to the Chancellor asking her to make Uber pay the same level of VAT as black cabs, blaming lobbying efforts by the company for misleading the Treasury and the UK public on its perks.

The Licensed Taxi Drivers’ Association and the London & Eastern Cab Section have written a joint letter demanding that the Tour Operators Margin Scheme (TOMS), which allows travel companies to pay an effective VAT rate of five per cent, is closed to private car hires.

Cabbies, which have to pay the full 20 per cent VAT rate, have argued that Uber have exploited the tax loophole in an unfair way that has given the company an unfair advantage.

“Large multinational companies operating in the UK shoul

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