CABBIES in Burnley have renewed their threat to take the council to court after it announced plans to stop limiting the number of licences it hands out.

But they have backed down from a threat to strike over Christmas and New Year.

Drivers claim there is not enough custom in the town to support the plans.

They have employed a solicitor to and are threatening to take the council to court.

The council has been warned it would face having to pay out at least £130,000 if it loses any court action because it would have ignored expert advice which said there was no unmet demand.

Mohammed Ibrar, chair of the town's Hackney Carriage Drivers Association, said: "We are not going to go on strike because that would alienate people and we have a lot of support among the public.

"But we are asking for this decision to be called in by the Government and, if that doesn't work, we will consider legal action."

Burnley Council, which approved the move earlier this month, has said granting more Hackney carriage licences will open up trade, allow for more cabs with disabled access, keep fares down and lead to safer taxis.