Taxi drivers have lost their bid to limit the number of licences issued by Watford Borough Council.

Watford Hackney Carriage Drivers' Association (WHCDA) has raised concerns about the number of new drivers operating in the town, filling already congested taxi ranks and, during the current recession, hitting existing drivers in their pockets by reducing the number of available fares.

They believe the council should limit the number of licences issued until the economy picks up, in the face of the council's decision to delimit the trade in November 2006, and the group has already staged several protests in the town.

Despite this, Watford Borough Council's licensing committee voted to maintain its policy of delimitation on Monday evening.

The committee heard that there were 277 Hackney Carriage licences issued in 2008, compared to 78 in 2005. However, the fall in the number of private hire taxi licences meant many councillors felt the total number of cabs in the town had not changed.

Shujait Sardar, speaking on behalf of the WHCDA in front of several drivers who sat in the council chamber gallery, said the group was concerned because of the “sheer number of licenced taxis” in the town.

He said: “Due to the present (economic) climate, the situation is very, very bad. It's becoming extremely difficult to survive.”

He asked the council to consider a survey to discover the true extent of the taxi trade in Watford – an idea backed by Councillors Andrew Mortimer and Ken Brodhurst.

Though Councillor Mortimer originally backed delimitation, he said it should have been implemented gradually.

He said: “Where I feel there may be room for some manoeuvre is to make sure that these people who are finding it hard to make a living are not compromised by further licences issued.”

He proposed that, following an unmet demand survey and consultation, a cap be placed on the number of licences issued by the council.

Though this was seconded by Councillor Brodhurst, they lost the vote.

Councillor George Derbyshire said: “We recognise we are in a period of recession. Many people in the private sector and particularly people in retail are suffering considerably. Taxi drivers are part of that but I don't think we can treat them as a special species differently from everybody else who is suffering as a result of the recession.”

Councillor Jan Brown added: “We don't stop people from opening restaurants in Watford on the grounds there aren't enough customers. We don't stop people from opening bars on the grounds there aren't enough customers to go around. I think delimitation is the right policy and one I think we have to continue.”