Problems arose for the cabbies when a national company was given the franchise to pick up fares from the town's mainline station.

More than 20 owner-drivers refused to pay an �800 increase in fees and others sought alternative employment as a result.

The cabbies threatened industrial action including a blockade of the station.

Fee concerns

Now Great North Eastern Railway (GNER) has awarded permits to all the original drivers to work from the station.

Trevor Brown, who led the protest, said all the drivers were delighted with the new deal.

"We went from �800 up to about �1,400 a year.

"A lot of people felt they would not be able to keep up the payments. You have got to invest in cars and everything and we could not see a way forward."

Taxi association

Other taxi drivers working in the town offered their support to the cabbies as did those operating from other stations on the East Coast Main Line.

Mr Brown added: "The new deal is welcome, we have formed an association -the Darlington Taxi Owner's Association - and we have taken over the rank at Darlington station.

"We have got the price down to a third of what it was last year... and 45 jobs are safe for a couple of years at least."

Mr Brown said GNER had now asked if the cabbies will join an East Coat Mainline association of taxi drivers.