TAXI drivers in Darlington vowed to continue their fight after a High Court judge ruled against them in a test case which could set a national precedent.

Darlington Borough Council was told it was entitled to impose a controversial driving test on taxi drivers before issuing licences.

However, defiant cabbies, with the backing of town hall union Amicus, vowed to carry on their two-and-a-half year battle, despite losing the appeal.

Coun Nick Wallis, cabinet member for highways and transport, said: "The High Court decision fully vindicates the action taken by this council and wholeheartedly supports the council's desire to improve safety for fare-paying taxi passengers.

"I am delighted that, as we thought, the law supports councils like Darlington that want to improve taxi standards."

In 2002, the council introduced the Driving Standards Agency test for taxi drivers applying for their first licence, or experienced drivers renewing their licences.

The test is used by more then 40 councils across the country.

Many drivers refused to sit the test, including Malcolm Kaye, 54, a cabbie of 33 years, who was the focus of the case.

Mr Kaye was refused a licence in November 2003, because he had not taken the test.

Helped by Amicus, he took the borough council to court and, in July, magistrates in Bishop Auckland ruled the council had been unlawful.

The council then appealed to the High Court, and last Monday, cabbies drove through the early hours to be at London's Royal Court's of Justice where the case was heard.

Justice Alan Wilkie overturned the decision and referred the case back to magistrates.

Mr Kaye is expected to argue that he is an exceptional case to a new bench of magistrates.

Ruling in the council's favour, Justice Wilkie, said the council was entitled to adopt a policy that it would not regard a person as a fit and proper person to have a licence, who had not first passed the specific taxi driver test.

Gerry Hunter, regional officer for Amicus, said: "We haven't lost yet and Darlington Borough Council hasn't won. Our lawyers will be reviewing this decision with our barristers and if necessary we will take it to the Court of Appeal."

Taxi driver George Jenkinson said: "We haven't lost yet and we may win again in the magistrates court, the battle will continue."

Billy McMillan, another cabbie, said: "I passed the test but it hasn't made me a better driver."

Driver Peter Mudd said: "This affects every taxi driver in the country; it is going to make Darlington a battle ground."

Tom Harris, a cabbie of 15 years said: "We will keep supporting the fight, we have to."

Both Middlesbrough and Stockton councils, require their new taxi drivers to pass the test, but it is not retrospective.

However Hartlepool, Newcastle, York City, Sunderland, Richmondshire and Hambleton District councils do not enforce a practical test.

Coun Wallis said: "I believe that as a result of the High Court decision we will have more taxi drivers who are better skilled and safer as a result of having passed this test."