PLANS to increase the cost of taxi licences by 15 per cent a year for the next five years have been met by anger from drivers.

Ryedale District Council has proposed the new fees to try to make its taxi licensing service break even.

But taxi drivers say they are being penalised by the council and have protested against the increase.

The new charges would make licences in Ryedale more expensive than in York, Selby or East Yorkshire, but on a par with fees in Scarborough.

A spokesman for Ryedale Taxi and Private Hire Association said: "The fares that we can charge are set by Ryedale District Council to a maximum of current inflation and yet this year taxi drivers voted not to increase fares at all due to an already declining customer base.

"Our customers are already struggling to afford the current tariff.

"When a taxi owner/driver finds himself in financial difficulties, he tries to get an extra one or two thousand miles out of his tyres, he delays putting the car in for a service and brake check for a further couple of thousand miles.

"Ryedale Council's duty of care policy must surely cover indirect as well as direct duty of care."

In a letter to the council, the spokesman said: "We carry out a vital service to the community. For the elderly, infirm, young and the extremely drunk, there are no other demand-responsive transport services and yet you wish to penalise us for this."

The letter was signed by more than 40 taxi drivers.

Beckie Bennett, the council's commercial services finance manager, said limiting the rise to just five per cent would leave the service with a budget shortfall of £14,500.

"The proposed increases for 2006/07 will mean an annual increase for drivers of £10 and £35 for vehicles," she said.

"This is a highly valued service and high prices could push potential applicants away from the service. However, current evidence does not suggest this is the case, even though existing charges are high when compared with others."

The council's community services and licensing committee will discuss the fees on Thursday.