TAXI operators claim they are being driven out of business by in increase in competition and a lack of rank spaces.

The claim comes as Middlesbrough Borough Council's licensing committee prepares to discuss plans to issue 20 extra licences for wheelchair accessible taxis.

It was originally hoped that they could be granted to existing licence holders, who would update their vehicles, but the idea has been rejected by drivers.

There are presently 209 Hackney carriages in Middlesbrough, with only 75 rank spaces available at peak times.

Rashid Rahman, treasurer of the Middlesbrough Hackney Association, said: "We are already feeling it as all the Peugeots and black cabs are working 12 hours a day. Our takings have gone down by about ten per cent."

According to Mr Rahman, the cost of converting to take a wheelchair is too expensive.

He said. "The most popular car is a Ford Mondeo because they are cheap.

"The wheelchair accessible ones are converted six-seater Peugeots and London-style black cabs, which cost £25,000.

"To insure these vehicles, some people have paid £5,000, and the returns aren't there."

Mr Rahman said the council had made matters worse by failing to provide extra rank spaces, as it promised to do in January.

"Middlesbrough council is supposed to make more room on the central rank outside the Empire on Corporation Road but they haven't," he said.

A council spokesman said: "The problem is that they all want prime spots - Grange Road in particular is popular.

"There are other ranks in the town that are empty. It's a national problem that our engineers are looking at."