Taxi drivers have threatened to bring Watford “to a standstill” after accusing the council of driving them to the point of extinction.

More than 200 angry Hackney Carriage drivers marched through Watford town centre yesterday morning to voice their anger at the number of cabs now licensed to work in the town.

They say the borough has reached saturation point and claim a decision to offer Watford plates to Three Rivers drivers will force many drivers, already on the breadline, to the point of bankruptcy.

The drivers met in St Mary's Church square at 10am yesterday morning before marching, banners aloft, through the High Street and on to the town hall.

There the taxi drivers held a noisy rally and later met council officers.

The drivers say this, the latest row between the trade and Watford Borough Council, was sparked by a decision not to prosecute drivers who are licensed in Three Rivers, yet have been illegally plying for trade in Watford.

The council says it would be incredibly complicated and time consuming, not to mention potentially expensive to the taxpayer, to prosecute the private firms, many of which are based in Watford anyway.

It claims private drivers are free to apply for a Watford licence at any stage and will instead encourage them to do so, for the price of £19.50.

However, Shujait Sardar, chairman of the town's Hackney Carriage Drivers Association, said: “They should be enforcing the law and prosecuting them because they can't legally come and work in the town.

“We need to scare them off from the town, but instead of doing that the council has let them in the back door.

“They should be enforcing the law and stop them operating in the town illegally.”

He added: “A lot of our drivers are on the verge of bankruptcy.

“Everyone is fighting for jobs because there is simply not enough trade in Watford.”

He added the drivers may yet “ratchet up” their demonstrations, and could “bring Watford to a standstill” if their grievances are ignored.

Yesterday's demonstration is the latest in a long line of disagreements between the Hackney Carriage Drivers and the borough council.

The taxi drivers bitterly opposed the council's decision to “delimit” the numbers of cabs licensed in the town two years ago, causing an increase in the number of licensed drivers.

They have also complained at the small number of ranks in the town centre and at Watford Junction.

Councillor Keith Crout, who chairs Watford Borough Council's licensing committee, said he did have sympathy with the Hackney Carriage Drivers.

However, he added: “All the policies we have introduced are about improving the service to the public and ensuring their safety.

“I have every sympathy with the drivers because they are affected by the recession, but so is every one of us and we have to do our best to cope.”

He said: “The policy on delimitation is in line with Government policy and was supported by all parties at the committee meeting.

“There has been full consultation via regular meetings and I do not believe that any of the other measures complained about will have a serious affect on the drivers ability to earn money.”

Watford MP, Claire Ward, is planning to meet taxi drivers on Thursday.