A TEN per cent hike in taxi fares has been thrown out by councillors who promptly raised licence fees by a similar amount.

Taxi chiefs have accused Southampton city licensing chiefs of double standards for voting through the amount drivers pay to licence their cabs.

But they could not agree among themselves on a rise in fare charges, so councillors threw out any plans for a raise until rival trade bodies could decide on a figure.

Daily Echo: For a video of the top stories in today's Daily Echo, click the front page.

The Southampton Trade Association (STA) warned the “massive” rises proposed by Southampton Hackney Association (SHA) were too high to justify to the public and feared they would been seen as “greedy”. Each cited opposing results from surveys of drivers.

SHA chairman Ian Hall said the rises were needed to cover higher petrol and insurance costs, increased permit charges, a new council requirement for two MoTs a year, and compulsory £710 spy cameras in cabs, which have left many drivers struggling.

Licensing panel chairman Councillor Brian Parnell said the fare rises were refused because of “clear objections within the trade”.

And he added: “Although we’ve looked at the economic reasons for and against, at this stage there is no evidence to warrant an increase.”

Trade chiefs last night vowed to sit around the table with union bosses and agree more modest rises to resubmit to the council.

Mr Hall, who represents 126 hail and ride Hackney Carriage drivers, said: “I’m disappointed that the fare increases have been refused and yet the council can see fit to raise licence fees by ten per cent.”

Perry McMillan, chairman of the Southampton cab section of the Unite union, said: “It’s doubled standards but from today we will ensure that the trade will be getting together and will thrash out a deal that is favourable to all.”

Clive Johnson, chairman of the 416 member STA, branded the service provided by some council licensing officers as “atrocious” and said they had done nothing to justify an increase in the vehicle licence fees from £150 to £165.

He said: “We are pleased that we’ve got this fare proposal stopped and that common sense prevailed. Sadly it didn’t with the licence fees.”

Over the past decade fares in Southampton have dropped from among the most expensive in the country to 116th of 380 authorities, according to a trade survey.