Call to boost taxi numbers

Britain's taxi industry should be deregulated in a bid to tackle shortages which have led to a rise in illegal touts, according to the competition watchdog.

The Office of Fair Trading said repealing laws which allow councils to cap the number of licensed taxis would cut waiting times by 10 per cent and add 15,000 taxis.

John Vickers, OFT chairman, said: "Quantity restrictions are against the pub l ic interest because they mean fewer taxis on the roads, longer waiting times, less choice and risks to public safety.

"De-restriction, alongside essential quality controls, would allow all to benefit, and would free up growth of taxi services throughout the UK." The OFT, which began its investigation in August 2002, said long waits for taxis created a gap in the market which had been partly filled by illegal cabs - which were used by some 1.8 million people last year.

But Graham Stevenson, from the Transport and General Workers' Union, which represents thousands of taxi drivers, said: "More competition doesn't automatically mean better local transport. What will be better for consumers is more robust regulation to outlaw the 'cowboy cabs' to ensure a safe and quality service.