A COUNCIL has agreed to review its policy on the colour of taxis after doing a U-turn over a cabbie's red car.

George Jenkinson threatened to sue Darlington Borough Council for a second time in April after it refused him a licence for his Hackney carriage because it was the wrong shade of red.

Mr Jenkinson defeated the authority in court last year after it told him to stop advertising on his Hackney carriage because it is maroon.

Yesterday, the council admitted defeat and agreed to grant the licence and to pay Mr Jenkinson an out-of-court settlement to cover his legal fees.

Taxi licensing manager Barry Pearson said that the council would carry out a consultation with cabbies on its policy to license only bright red cars.

If a majority of drivers disagree with the policy it could be revoked.

Mr Jenkinson, 56, of Minors Crescent, Darlington, said the council wasted public money by refusing the licence.

"They have realised they are wrong and have had to back down now," he said. "But I think I would rather it went to the courts. They keep coming up with silly ideas and they don't check the law to see if it's right or wrong. It should never have got this far."

Mr Pearson admitted the council's latest decision was a "turnaround", taken on the advice of lawyers.

"We refused his plate because it did not comply with the council's policy," he said. "We met with his solicitors last week and we agreed on balance that we didn't want to go to court.

"We have decided we will licence this vehicle. But our policy still stands and we are not saying the colour policy is wrong.

"We are going to consult with all the Hackney carriage proprietors and members of the public protection forum about it."

Mr Jenkinson's Fiat Multipla will be given its licence today.