AS fuel prices drop off, taxi drivers in Purbeck can breathe a further sigh of relief after the first rise in fares for almost three years got the go-ahead.

Cabbies said they were being hit hard as diesel prices went through the roof and they were unable to up their fares to compensate.

Unlike other businesses, taxi drivers have their fares set by Purbeck District Council and have to follow a set tariff.

Council leader Cllr Gary Suttle asked licensing chiefs to look at the charges.

The council invited drivers to an informal meeting and afterwards, in a formal session of the licensing board that followed, bosses elected to go with a 20p a mile rise.

Cllr Wendy Starr, chairman of the licensing board, said: "We feel 20p a mile is a fair increase. It's been two-and-a-half years since the last increase and the burden of added fuel costs has caused extra financial pressures."

Some charges have been dropped in the new tariff, such as extra fees for pushchairs, and Sundays will be time-and-a-half, rather than double time.

Robert Ciardini, a partner at Swanage Associated Taxis, said: "We're glad that something's been done."

Although the rises have been agreed, they still have to be advertised to allow for any objections.

Mr Ciardini said: "The only irritating thing is it took so long to sort out, but I think everybody should be happy."

The licensing board agreed to review fares annually.

"If they raise it 10p a year everybody will be happy." added Mr Ciardini.