A four per cent rise in hackney carriage fares has been controversially approved by a senior councillor.

A report into the decision by Coun Patricia Fieldhouse, cabinet member for social well being at Fylde Council, said that officers recommended the increase in order to bring prices in line with a similar increase in Wyre to "provide consistency in the area".

But some cabbies have vowed to rebel against the decision and keep fares down to suit their customers.

Explaining the decision, Coun Fieldhouse said: "The fares in the Fylde are still cheaper than those in neighbouring authorities despite this increase.

"As running costs of vehicles increase we don't want to see the standards of the taxis transporting our visitors and residents to fall short of what people expect.

"The fares are reviewed every year and we are happy to take comments on board from taxi associations and passengers when deciding upon prices for the coming year."

But John Whiteside, who runs St Annes-based Whiteside Taxis and is a member of the Fylde Taxi and Private Association, said there was no need for an increase.

He added: "We don't see that a rise is necessary. With the recession going on we're trying to keep fares as low as possible to keep business moving.

"The price of petrol has also dropped quite considerably.

"It's not necessary, we won't be following it and we will put our meters below that level."

And Jon Cutler, managing director of Premier Cabs, agreed now was not the time for increasing fares.

He said: "It's something they have to do on an annual basis because of the rising costs of running a taxi but we are not interested in implementing them while the country is in the state it is.

"There is already a squeeze on and that's why we're giving away free clocks, cinema tickets and discount cards."

Warton-based Jimmy McLemon, from the Fylde Hackney Carriage Drivers Association, also said he was not happy with the increase.

"It's not really what we wanted or is acceptable but there's not much we can do about it," he said.

"Councillors are making decisions about taxiing and they know nothing at all about it. They haven't a clue.

"They are taking more and more money off us for licenses and other things and I don't know where it all goes and we have a massive problem with ranks in Lytham which are still not provided to an adequate level."

The changes mean the maximum fare for the first mile on tariff one – during the day – will increase from £3.50 to £3.70.

The fares are then £5.30 for two miles, £10.10 for five miles and £18.10 for 10 miles.

All the prices are maximums and taxi firms and drivers are under no obligation to follow them but must stay below them.