Taxi drivers in Tendring fear jobs will be lost following a 50 per cent rise in the cost of licences.

The increase from £107 per vehicle per year to £160 will begin from April 1, and it is still one of the lowest rates in Essex, but operators claim it could force some drivers off the road.

Mick Gray of Andy's and Oliver's Taxis in Rosemary Road, Clacton, warned it could lead to fare increases.

He said: "Fuel prices have soared, road tax is increasing and this will all have to be reflected in the fares. Drivers and companies will find it harder and harder to continue working."

Mr Gray said firms would lose customers and most could not afford to. He said an increase had been expected, but the figure was too high.

Tendring Council's community committee heard the fees were lower than elsewhere in Essex. It was told the increase was to finance a permanent post of a licensing enforcement officer and to offset the increase in the twice yearly fee for mechanical tests on taxis.

Tom Cook (Lab, St Marys) said: "I can understand why they say livlihoods could be at risk as the increase is pretty steep," he said. "I would have preferred a sliding scale."

The cost of a private hire vehicle operators five-year licence is also to jump from £155 to £232 for the first vehicle and then from £60 to £90 for each additional vehicle.

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