Taxi fares are likely to go up by about seven per cent this year, almost three times the rise in inflation.

The Brighton and Hove taxi trade has made an application for the increase to Brighton and Hove Council.

Environment cabinet councillor John Ballance is being recommended to approve it at a meeting on Tuesday.

If he agrees, the cost of a mile-long journey will rise from £2.60 to £2.80 and a three-mile trip from £5.40 to £5.80.

This follows a flat 20p increase on all fares introduced last November.

Environment director Alan McCarthy said: "This is in recognition of considerable increases in running costs, which are already having a substantial effect on the trade."

The cabbies' application said fares had fallen in real terms over the last three years.

It said there had been big increases in fuel and insurance costs and it was costing £200 for eah cab to comply with new livery requirements.

The application stated: "The average cost of running a taxi is now around £300 a week and is much higher for many, such as those funding new London cabs.

"This amount has to be found each week regardless of illness, accident, holidays, breakdown or seasonal variations."

Drivers say the European working time directive will also have a serious effect on the trade and fares will have to rise by nearly 50 per cent to prevent drivers suffering hardship.

It says cabbies should not work more than 48 hours a week, while many in Brighton and Hove work 80 hours.

The application added: "Unlike our European colleagues, British drivers receive no fuel subsidies, no road fund rebate, no vehicle purchase tax rebate, no paid holiday and no paid sick pay.

"If 48 hours does become the maximum, there will be little or no cover at quiet times, such as in the early hours."

The drivers added that diesel had increased by 95p a gallon over the last three years and this amounted to an annual average of £1,266 more in fuel costs.