TAXI firms in Teesdale have warned that fares are likely to rise after the council increased licence fees by up to 30 per cent.

Three firms in Barnard Castle wrote to Teesdale District Council to complain about the rise, arguing they will not get anything in return for the fee.

The licence fee for a taxi has gone up from £100 to £130, while the driver licence fee has risen £10 to £50 per year.

Any company with a Hackney cab, which can pick up passengers without prior booking, must now pay £150 per year, up by £10.

It is the first time the council has increased the fees since October 2000.

In a letter of complaint to the council, one taxi operator said: "If I had to increase my fares by 25 per cent, I would have no customers left.

"We do not get value for money from our licence fees, as we have no ranks to work from and have no enforcement officers to stop unlicensed cars operating in our area.

"If council tax went up by 25 per cent there would be rioting in the streets, but taxi operators seem to have no choice but to pay."

Morris Eustace, manager of Hodgson's Private Hire, in Barnard Castle, said: "You pay all this money in licence fees but where does it go? Nothing happens to help parking or giving us a rank facility."

Mr Eustace said that they would now be looking at increasing fares slightly in order to recoup the cost.

Nicky Simpson, owner of Simpson's Travel, said: "There's no enforcement. At the moment we've got people coming into the town with no taxi licence. One of my drivers saw 13 people get into an eight-seater minibus."

Gary Hutchinson, environmental health manager at the council said: "What we are looking at is how we can use the money in the future, because at the moment the service we give is very basic, and I would be looking to improve that.

"It would be invested in administrative aspects and enforcement, but also we'd be looking to improve the advice we give out and the educational side of the service, as well as bringing those taxi drivers who don't have licences into line."