Councillors have rejected pleas from taxi drivers to cap the number of licensed vehicles allowed to operate in Watford.

Watford Borough Council had previously limited the number of licensed Hackney Carriage vehicles, effectively allowing fewer drivers to make more money.

In October 2006, however, all limits were removed, sending the number of vehicles soaring from 115 to 283 in just a year.

Although this number now stands at 246, members of The Watford Hackney Carriage Drivers’ Association claim the local market has reached saturation point, with too many drivers chasing a dwindling number of fares.

Its members, some of whom claim to be making as little as £30 for a 14 hour day, had asked the council to re-introduce a limit to protect their livelihoods.

Members of the council’s Licensing Committee, however, voted last night to continue the existing policy of deregulation, offering only to re-examine the issue next February.

They agreed that passengers had to be served by the right number of vehicles – a number that a free market approach is still deciding.

Councillor George Derbyshire said: “It seems to me that we’ve got a situation where the principle of delimitation, and allowing the market to decide the number of licensed vehicles, is actually working.”

Councillor Andrew Mortimer agreed, adding: “I think the market is self regulating and that we should leave it as it is. I think the policy [of deregulation] is in line with our principles of a free market.”

Adil Butt, a member of the drivers’ association, expressed his disappointment after the hearing. He said: “There are too many taxis out there and people are really struggling to make a living. The recession means there are less fares out there as well. “Some drivers are making as little as £30 pounds a day – for 12 and 14 hours work. We need a new limit in numbers.”

Asked what a sensible number of licensed Hackney Carriage vehicles would be, Mr Butt argued for between 150 and 160.