TAXI drivers in Blaenau Gwent could face a 10 per cent increase in their licence fees next year.

Councillors have agreed to ask the trade for their views on the potential of raising fees for new vehicles by £29.65, which would take the amount paid from £295 to £324.65 from April 1 2020.

The price increase is being proposed after a “reduced fee” was agreed for this year, which has contributed to a predicted overspend of £12,794 in the authority’s licensing department.

Council licensing bosses are now attempting to make up the funding gap.

But concerns were expressed over the impact of the proposed price rise on taxi drivers.

At a meeting of the council’s general licensing committee, Cllr Tommy Smith said many people rely on taxis due to a “lack of public transport.”

“With the lack of public transport in the area, we are just going to put pressure onto these small businesses,” he said.

Councillor Wayne Hodgins questioned whether the price increase could be phased so that the authority is also “protecting some of the trade.”

“I find it a little bit difficult when the report mentions about how it could impact on small businesses, and taxis are a small business,” he said.

The £29.65 increase includes £10 to claw back money lost from offering a reduced fee this year.

Councillor Denzil Hancock backed the proposals, calling it “a small increase” which would amount to less than £1 a week.

David Thompson, service manager for public protection at the council, said the department is “under pressure financially.”

“We are going to be faced with a significant challenge if we do not set the fees based on cost recovery and the catch up this time,” he said.

Last year, taxi drivers asked for a review of the fares they can charge and were allowed to increase the amount, Mr Thompson also pointed out.

The committee agreed to ask taxi drivers for their views on the proposed increase.