More than 500 private hire drivers across Telford & Wrekin are planning to take advantage of a legal loophole to avoid a rise in licence fees.

The drivers are planning to give back their licences to Telford & Wrekin Council and instead apply for hackney carriage licences from Shropshire Council as the fees are lower.

David Edwards, head of county public protection at Shropshire Council, said a hackney carriage licensed by Shropshire Council was able to undertake booked appointments anywhere in the country.

Councillor Miles Hosken, cabinet member for community protection and cohesion at Telford & Wrekin, said there was case law that enabled private hire operators to apply for licences wherever they chose.

Telford & Wrekin Council’s decision would see the operator’s annual licence fee rise from £462 to £2,495.

Mohammed Zaman, chairman of Telford Private Hire Drivers’ Association, said: “The majority, if not all, of the private hire trade licensed by Telford & Wrekin Council have decided to become licensed in the hackney carriage trade with Shropshire Council.

“Unlike Telford & Wrekin Council, Shropshire Council has clearly shown us that they are committed to providing the trade with an excellent customer service.”

It was revealed during a meeting of the council’s licensing committee in December 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 that burden.

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

A 12-month licence with Shropshire Council costs £80, but that amount is currently under review.

Nigel Horler, chairman of Telford Private Hire Operators’ Association, said: “It’s a great shame that it’s come to this, but as a trade, we all work very hard to provide the very best service to our customers.”

Councillor Hosken added: “It is a matter for them which authority they apply to and a matter for the authority that receives the application as to whether it is granted.”

By Jason Lavan