CONTENTIOUS plans to increase the cost of taxi licensing fees by 10 per cent in Blaenau Gwent have been scrapped.

A public consultation proposed raising fees for new vehicles by £29.65, which would have taken the amount paid from £295 to £324.65 from April 1.

The price increase was 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.

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Councillors previously raised concerns over the impact of the proposed price rise on taxi drivers.

A decision to scrap the proposed hike was made under delegated authority after a general licensing committee meeting on March 17 was cancelled.

The council said the decision not to increase fees was “taken independently of the measures announced as part of the coronavirus outbreak.”

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

But concerns were raised that the move would put pressure on the taxi trade.

Cllr Tommy Smith said many people in the county borough rely on taxis due to a “lack of public transport.”

Last year, taxi drivers in the borough were given permission to increase their fares, with the maximum cost for a two mile journey increasing from £4.10 to £5.20.

The fare increase was brought in to help the trade, but the Blaenau Gwent Hackney and Private Hire Taxi Association said the rise only allowed drivers “play catch up on the seven years since the previous increase.”

The association said that Blaenau Gwent is one of the most deprived areas in Wales, but that licence fees in other areas are lower.

A council report says fees charged are based on costs to deliver the service, and not on those of neighbouring authorities.

A spokesman for the council said: “In the current period of economic uncertainty it was recognised that  we need to support the taxi businesses in Blaenau Gwent to ensure there is a service available to our residents which is sustainable through the Covid 19 situation as part of the council’s wider support for business and the community.”