In that situation, operators would see their annual fees jump from £462 to £2,495.

There will now be a period of consultation where drivers and operators can make representations to the council’s licensing department.

Hundreds of private hire drivers from across Telford turned out to protest against plans by council chiefs to hike licence fees.

Operators and drivers in the borough will pay more after Telford & Wrekin Council’s licensing committee passed a motion to put up the fees. During last night’s meeting it was revealed that council tax payers were paying more than £40,000 annually to subsidise the cost of operating private hire vehicles in the borough.

The council had said its aim was to reduce the burden on the taxpayer.

Currently a private hire driver’s licence for 12 months costs £125 – but this will now rise to £170.

Similarly, a private hire operator’s licence for 51 plus vehicles is currently a flat charge of £462.  But under the new rules the flat charge will be £200, plus £45 for every vehicle.

In that situation, operators would see their annual fees jump from £462 to £2,495.

There will now be a period of consultation where drivers and operators can make representations to the council’s licensing department.

If the submissions are deemed relevant they will then be put to the committee, otherwise the hike will be introduced.

Councillors agreed during the meeting that any increase should be phased in over two years.

Lynda Horler, secretary of the Telford Private Hire Operators’ Association, said: “These increases are huge. Everyone is upset because these increases are extortionate.

“It’s going to make a huge impact because these fees have to be paid for from somewhere so if it is passed on to the driver it will be passed on to the passenger.

“A lot of the drivers will simply not stay in the trade.”

Suzanne Fisher, an officer in Telford & Wrekin Council’s Licensing Department, said the fees had not been increased since 2005.

She said the department had now changed its policy and would review the fees on an annual basis.

Drivers had previously warned minimum fares could jump from £3 to £15 if the changes were brought in.

By Jason Lavan