Market watchdog wants more cabs

Finding a taxi to go home at night is more difficult than it should be, the Office of Fair Trading has said.

The OFT has called for the repeal of laws allowing councils to limit cab numbers in town centres.

The laws cause long queues, public disorder and the increased usage of illegal mini-cabs, the OFT said.

Nearly half of all councils restrict cab numbers, and the OFT estimates that another 15,000 taxis would take to the streets if the market was freed up.

Starving the illegals

The OFT has been conducting a study of the £2.2bn UK taxi market, finding that there would be extra demand if more cabs were available.

Just increasing the number of cabs won't benefit either the consumer or the drivers Graham Stevenson, T&G spokesman

The removal of a cap on the number of legal cabs in Sheffield and Cambridge cut the proportion of people waiting more than five minutes for a taxi from more than one in five to less than one in 10.

Consumer groups welcomed the OFT's recommendations.

"The OFT has recognised that the liberalisation of licensing must not compromise consumer safety, and that by lifting entry restrictions this will help starve the illegal market, which depends on the shortage of licensed operators," said Phil Evans of the Consumers' Association.

But the Transport and General Workers' Union (T&G), which represents thousands of taxi drivers, poured cold water on the OFT's recommendation.

"Just increasing the number of cabs won't benefit either the consumer or the drivers... What will be better for consumers is more robust regulation to outlaw the 'cowboy cabs' to ensure a safe and quality service," Graham Stevenson, T&G spokesman said.

The OFT also recommended that councils should protect consumers by setting maximum fare levels for taxis.