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

At a meeting of the Licensing Committee last night, politicians decided to limit the number of plates to 304, which is the current number of hackney carriages on the road.

In June the council agreed to commission an unmet demand survey to get a better idea of how many taxis the town actually needs.

The council paid CTS, an independent industry expert, £12,500 to complete the research between August and November last year.

Joe MacLaren, project director at the company, gave a presentation of the findings at last night’s meeting.

He said that the findings showed no evidence of unmet demand of any significance, and that there appeared to be a large over-supply oh hackney carriage vehicles.

Councillors on the committee therefore decided to impose a limit, and no further licences will be issued unless one is handed back by an existing driver.

Councillor Jan Brown, who chaired last night’s meeting, said: "This is a very important decision.

"We don’t want to move anyone out but we need to make things better."

The Hackney Carriage Association had previously asked the committee to apply a limit in 2009, following a large increase after the council’s decision to delimit the trade in November 2006.

At the time, representatives from the association claimed that 277 licences were issued in 2008 compared to 78 in 2005.

However politicians rejected the bid as they felt the fall in private taxi licences meant that the total number of cabs in the town had not changed.

Councillor George Derbyshire said: "The report shows that the demand for hackney carriages and the supply are no longer in balance.

"It is more than reasonable for us to reinstate a limit as a way of trying to deal with this situation."

After a long battle with the council taxi drivers spoke of their relief that the limit had been put in a place at a time when many drivers are struggling to earn a living.

Shafiq Ahmed, chairman of the Watford Hackney Carriage Association, said: "Common sense prevailed and I am very grateful to the council for commissioning a survey to justify what we have been saying for the last four years.

"Things are very difficult for taxi drivers in Watford.

"There are too many taxis - there are cars on top of each other and the constant flow of taxis is driving everybody insane.

"It didn’t make sense to keep issuing more licences."

Although the association predicts that it will take a few years for the limit to show any dramatic improvements, Mr Ahmed said that the council’s decision gave taxi drivers hope.

He added: "It gives them the hope that things will progress slowly."