TAXI drivers in Malvern say they are being driven out of business because of a flood of cabbies from Worcester taking their passengers.

They say the increased numbers mean drivers who do not know the town are taking passengers and often overcharging and getting lost.

Sue Penny, of Classic Cabs, said: "It is a nightmare and it is having a really bad effect on business. Malvern Hills District Council dropped the knowledge test of the area and these new drivers don't know where they are going. The council has now reinstated the knowledge test, but it is a case of shutting the stable door after the horse has bolted."

She said the council thought the town could cope with more taxis, but it has had an adverse effect for established drivers and passengers alike.

She said: "There's a lot of ill feeling. They are not living in the area.

"It's an insult - they don't know where they are going. Some of them are even charging the wrong tariffs."

Mrs Penny said she has had to scale back her business as her income has gone down.

"These are difficult times for many of us. I've had to diversify by buying a taxi for disabled passengers," she said.

Her son Mark, who runs Hello Taxi in the town, said his income has dropped dramatically.

He said: "If I plotted a graph I'm sure my earnings must be down by half.

"The passengers are losing out as well. When there were just Malvern taxi drivers, we knew each other and looked out for our passengers, and if there was anyone strange they stood out. All that has gone."

Another driver, who did not wish to be named, said: "The problem is these new drivers congregate at Great Malvern station and take visitors and they don't know where they are going. They take them all around the Wrekin and overcharge them."

Worcester Taxi Drivers' association chairman Mohammed Ali said he was unaware of any problems with city taxi drivers in Malvern.

A Worcester City Council spokesman said: "Our taxi drivers can pick people up from Worcester and take them to Malvern, or pick people up from Malvern and take them to Worcester.

"If a driver wanted to pick someone up from Malvern and take them elsewhere, he would need a licence from them."

Phil Browning, licensing officer for Malvern Hills District Council, said: "Our commitment is for adequate provisions for members of the public that they can travel safely in roadworthy vehicles.

"We have no right to limit trade."

He said the knowledge test had been initially dropped because of complaints from the taxi trade that it was stopping new drivers working in Malvern but was then reinstated at the request of the town's taxi drivers.

He said: "This was re-introduced in April.

"We try to respond to what the taxi trade wants."