Wakefield Council could be ordered to pay out millions of pounds to taxi drivers after a ‘landmark’ court ruling found they have been overcharging for licensing fees for years.
The council now face a huge backdated bill to reimburse taxi drivers who Leeds High Court found were being unlawfully overcharged since 2004.
Wakefield District Private Hire and Hackney Association brought the judicial review against the council after the cost of a licensing badge this year increased by 60 per cent to £384.
Judge also refused Wakefield Council permission to appeal, but they will have the opportunity to make an application to the Court of Appeal.
According to a report in the Wakefield Express, the refunded payment would be in excess of £1 million, which could increase if the council is unsuccessful in an appeal. The High Court has ordered the council to set new licensing fees to come into effect by March 2019.
It is understood that the council will continue to issue taxi licences, although until the new fees have been set, they cannot charge vehicle fees.
wajid Ali, co-chairman of the Wakefield District Private Hire and Hackney Association has said that this landmark judgement could pave the way for other bodies to challenge licensing fees across the country.