A TAXI strike has been called off after Pendle Council did a U-turn on its decision to increase taxi licensing fees.

Councillors had agreed to meet with cabbies to thrash out solutions after the council said it would put up fees -- despite making nearly £15,000 profit on the fees.

Pendle Taxis Association had threatened to call a strike but the plans have been put on hold after the announcement to keep fees the same was made last night .

At Pendle Council's Executive meeting, councillors voted unanimously to withdraw plans to put up the charges by five per cent.

Leader of the council Alan Davies said after a previous meeting with drivers on Wednesday the rise was "not necessary" this financial year.

He said the increase on fees had been based on estimated figures for the year's profits and surplus. But because a profit had been made, the rise did not need to be brought in.

Taxi driver Mohammed Akram, who was poised to speak on behalf of the handful of drivers that showed up at the meeting, left smiling.

Mr Akram did not need to use the notes he had prepared to argue his case to councillors.

The decision was a reverse of the agreement at the last meeting of the Executive after councillors voted for a rise to start from September 1.

Mr Davies said: "The situation changed last year when a large number of licences were requested bringing in additional income which was not expected.

"The increase in fees was on assumptions which are now no longer valid ."