Council accused of overcharging taxis ; Cab firm bosses go to the audit commission

judicial review, should the need arise, while another Pounds20,000 was earmarked to pay for a new licensing software system.

The final Pounds 10,000 has been ring-fenced to pay for"backscanning" historical documents, a memo to the transport companyrevealed. But according to council accounts it was a surplus overand above expenditure during that period.

Mr Smith has described the council's behaviour as a "disgrace"and is demanding the money be returned to the taxi companies.

"I am actually shocked. We have not had answers to the questionsthat we have asked," he said.

"This all came up after the council announced another increase inlicence fees, …