A CHARITY operating a taxi service for the elderly and disabled has warned it might have to cease operating if additional funding is not found.

Dial-a-Ride, in Darlington, was established 11 years ago, but spiralling petrol and insurance costs have meant that, despite an increase in passenger numbers, it is struggling to survive.

Charles Smith, the charity's finance director, said it was spending up to £300 more each month on petrol than had been budgeted for, because of the rise in fuel prices.

It also has to pay extra to insure each of the five vehicles it operates, after insurance premiums rose by 55 per cent per vehicle, from £660 to £1,081.

On top of that, the charity has only received £4,000 in donations this year, whereas last year it was given about £13,000.

The charity receives £32,000 from Darlington Borough Council and fare income adds up to £22,000, but this still leaves the charity needing to find an extra £13,000 a year.

The charity came under threat earlier this year, when it was feared that it would have to conform to private hire licensing regulations, at an extra cost of £5,000 a year.

But the charity argued the rules did not apply because the vehicles were part of a non-profit-making organisation.

Mr Smith said: "This year, around 6,700 passengers have used our transport service, and people often ask why don't you put the fares up?

"But we are dealing with elderly and disabled people who don't have a lot of disposable income, so we have to offer a competitive fare or they would turn around and say they couldn't afford us.

"We are struggling at the moment. If we don't get any additional funding we would have to seriously consider our position and we may close down next year."

Mr Smith said that the charity desperately needs more donations from businesses and individuals.

Anyone wishing to make a donation or fundraise for the charity can contact Darlington Dial-a-Ride at Memorial House, 9 Albert Road, Darlington, on (01325) 380070