TAXI drivers in a North-East town are to go on strike in opposition to plans that could see their licence fees increased by as much as £300-a-year.

Drivers of taxis and Private Hire vehicles in Stockton, who the local council say have been undercharged for several years, joined forces today to protest against the proposals, which would see them having to fork out fees of around £800 over a 12-month period.

Representatives of the Stockton Hackney Drivers Association presented hundreds of letters of objection to council officials today and a withdrawal of all taxi services this weekend is planned, save for services involving hospitals, care homes and care workers.

Drivers have demanded information from Stockton Council to help them prepare an official objection to the new fees.

Speaking on behalf of the taxi association, chairman Basharat Mahmood said: "The council is proposing to charge drivers up to "300 more for their licences, from April, 2008.

"The taxi trade is very quiet at the moment and likely to get worse. Drivers are all self-employed and their determination to fight these fee increases will include something they can ill-afford - a stopping of services."

A series of events including 'slow drives' at peak times will follow after March 31, if the council confirms the proposed fee increases.

Acting secretary of the association, Javid Khazir, said: "The council has created a situation where the senior manager of the council function which includes the taxi licensing department, is also the person who will consider, and accept or reject our objection to these massive increases.

"We have no belief that this arrangement can be regarded as either fair or independent. We want a new system which makes our elected councillors the final arbiters of decisions on the level of fees."

Coun Steve Nelson, Stockton Council's cabinet member for housing and community safety, said a review of fees had been carried out.

"Following a request from the taxi trade, a review of Stockton Council's transport account was carried out. This showed there has been undercharging for a number of years," he said.

"Adjustments have been made to the current year's budget and the proposed budget for next year which have resulted in the proposed increases."