Millennium celebrations in Tendring could be thrown into chaos with no taxis available.
A bid to allow drivers to triple their fares was rejected by Tendring Council and branded "extortionate".
Now John Brigden, chairman of the Tendring Taxi Association, said hardly any drivers wanted to work on New Year's Eve.
"There are not going to be any taxis on New Year's Eve in the whole of Tendring apart from the odd one-man band. None of the drivers want to work. They want to go out and enjoy themselves. The idea was an incentive to get them out but now there is no incentive.
"The people of Tendring are going to be very, very short of taxis," he said.
Mr Brigden explained his association would now watch what neighbouring areas were allowed to charge and then put in a new bid - close to the highest of any other rates permitted.
Tendring Council's licensing sub-committee rejected the bid for a fare increase last week.
It was suggested that a rise of 50 per cent, rather than 300 per cent, would be more acceptable.
Mr Brigden said taxi drivers had originally thought about asking for six times the normal rate.
Converted for the new archive on 19 November 2001. Some images and formatting may have been lost in the conversion.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article