THERE is likely to be a big reduction in the amount of money taxi drivers must pay to licence their vehicles following complaints by a taxi firm.

However, drivers' fees seem certain to rise as a result of a new fee structure to be considered by Middlesbrough Borough Council next week.

Boro Taxis complained about the fee structure to the Local Government Ombudsman on the grounds that it was not transparent enough - and the complaint was upheld.

That led to an apology from Middlesbrough council to the taxi firm and a new fee structure has been compiled which will be put before a meeting of the Full Council on Wednesday (September 16). There will then be a 56-day consultation period.

The report to the council says that under the proposals, vehicle licences will reduce by an average of 45 per cent - and 37 per cent for new applications and renewals.

Overall, taxi operators' fees will be reduced but in drivers’ fees will rise by £149 to £204 for new applicants annual licence, and £57 to £112 for an annual renewal .

Full vehicle re-tests will rise by £19.50 to £68.

The proposed reductions in operators' fees comprise:

*New Hackney Carriage Vehicle Licence– down to £279 from £495.

*Hackney Carriage Vehicle Renewal – down to £297 from £455.

*New Private Hire Vehicle Licence– down to £270 from £513.

*Private Hire Vehicle Renewal – down to £288 from £479.50.

Christine Bell, Boro Taxis’ Company Secretary, who lodged the complaint with Dr Jane Martin, the Local Government Ombudsman, said: “While the proposed restructure is a mixed blessing for the industry with fees going up as well as down, the important point is that the council is for the first time formulating a transparent framework.

"One increase proposed that will concern the entire trade is the rise in the fee for vehicle tests, which currently are carried out in-house by the council."

A council spokesman explained that there is currently a surplus of £137,000 in the taxi licensing budget which will be used to offset the cost of renewing vehicle applications from December.

Councillor Julia Rostron, Middlesbrough council's executive member for adult health and social care, said: “Middlesbrough Council has for a number of years adopted a similar approach to taxi licensing fees to authorities up and down the country.

“We do however accept that the basis for this approach could not be fully evidenced, and we’re grateful to the complainant for bringing the issue to our attention.

"The new structure will result in some considerable changes but the work that has gone into its formulation will ensure that the fees charged accurately represent the costs involved."