TAXI fares in Edinburgh are set to rise as the cost of fuel and the global economic slowdown hits drivers.
Councillors are set to discuss new proposals to introduce a seven per cent fare increase amid claims the cost of diesel is putting many drivers out of business.
Taxi firms also say they have been affected by the congestion caused by the tram work
s and have not had a fare increase since 2006.
The proposed increase means a £5 fare would rise to £5.35 and a journey currently costing £10 would rise to £10.70.
A report by Jacobs Consultancy, the firm that was appointed in 2005 to undertake three consecutive taxi tariff reviews, says the overall costs of taxi operations in the city have increased from £39,300 in 2007 to £42,000 this year. Of the £2700 increase, 55 per cent is attributable to fuel, Jacobs said.
Murray Fleming, secretary of Central Radio Cabs, said a fare increase was long overdue, but he called into question the way Jacobs had reached its conclusions.
He said: "Given that we've not had a rise since 2006 and all the associated costs have gone up, clearly most drivers are now worse off. The review is long overdue, but we believe that Jacobs' methodology is flawed."
The recommended tariff changes would see the starting fare rise from £1.50 to £1.60 before 6pm on weekdays, and from £2.50 to £2.70 at night and at weekends. The call-out charge would rise from 60p to 70p, and the cleaning fee would also rise, from £20 to £21.50.
The Jacobs report highlights statistics published in trade magazine Private Hire and Taxi Monthly, which show Edinburgh to be 283rd on the list of the UK's most expensive cities for taxi fares.
Last month, the city council agreed to add an extra 20p onto fares as an interim measure until a formal fare rise could be discussed.
Dozens of cabbies are thought to have left the city's taxi trade in the last few months, blaming a combination of the economic downturn, fuel prices and the tram works.
It is understood a number of cabbies are retraining as bus drivers, while others who have passed the city's taxi examination are choosing not to take up work.
Drivers are also now sticking to the ranks, rather than cruising the streets looking for fares.
Raymond Davidson, secretary of the Edinburgh Taxi Association, said the fare increase would be a welcome boost for drivers at a time when many were turning their back on the trade.
"The drivers are taking a real hit from the fuel prices. We've not had a fare rise for over two years and our fares are some of the lowest in the UK.
"Times are very difficult. The credit crunch means many big firms are tightening their belts, and that has a knock-on effect for us. The impact of the tram project has also been massive."
