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Members of the council's licensing committee heard it was important to assess the fares in the light of significant rises in the cost of living and fuel prices.
Councillor Rosemary Rowe said they needed to consider the people in the taxi industry and those who use taxis in light of poor rural public transport services.
However, the rise was approved unanimously by councillors.
The rise of 12.1% is based on the current consumer-price index inflation figure of 4.9%, plus an estimated inflationary rise since January 2018 of 7.2%, the Local Democracy Reporting Service said.
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