TAXI drivers at Newcastle Central station are at loggerheads with Virgin East Coast trains over what have been described as “rip off” charges.

Drivers say a permit charged by the rail company to ply for hire at a short stay car park now costs £2,030 a year.

The RMT union said this was more than the cost of equivalent permits in Leicester, Birmingham and Preston combined.

Its general secretary Mick Cash said: “Our members are being exploited by Virgin, a wealthy global corporation.

“[The Newcastle permit] is one of the highest prices in the country and nothing short of extortionate.

“RMT will stand up for our taxi-driver members and the union is currently taking seeking legal advice and will consider direct action if that is what it takes.”

A spokesman for Virgin Trains said: “The cost of the permit reflects its market value. We’re keen to keep talking but should strike action take place, we have good contingency arrangements.”

It said the permit price for drivers was an annual fee of £1691 - plus VAT - and this was paid in four quarterly payments of £507.50.