MORE than 2,000 would-be taxi drivers will today have their illusions shattered after city bosses canned a controversial scheme to handout licences in a lottery-style draw.

Politicians at Southampton's civic centre received more than 500 complaints from taxi drivers after announcing they would give away 40 black cab licences in the free-for-all draw.

The new taxis were being licensed to accommodate the transport needs of disabled residents and all the new cabs must be wheelchair-friendly.

Union members and city taxi drivers attacked the plans because they feared it would steal their business and give the trade a roughshod reputation.

The news brought relief for worried drivers and union reps, but came in for scathing criticism from local taxi entrepreneur Dusty Miller - who accused the council of protecting a hardcore of drivers who fear competition.

Mr Miller, who caused a storm after pledging cash prizes to anyone who applied for a licence on his behalf, said: "Basically it's not going their way so they are changing the rules.

"They are under pressure from the unions and are bowing to it to protect their regular drivers.

"If a man wants to drive a taxi in this day and age he should be allowed to do so. But as soon as you try to get ahead in South-ampton, politicians block you.

"We did not agree with the way they were going to hand out licences, but there is no disputing the city needs more taxis - especially with disabled access."

But Perry McMillan, vice-chairman of the cabbies' arm of the Transport and General Workers Union (TGWU), said the news should be welcomed by the industry.

"We are delighted the council has seen fairness and dropped this lucky dip," he said today.

"The truth is that there isn't enough work around as it is. I know several drivers who are selling up because they know there will be no work when these licences come out.

"Now we just hope they consult us on the best and fairest way to give the new licences out. We will ask that a person must have three years' taxi experience, which would guard against abuse of the process."

Ideally the unions wanted the council to keep the new licences to within the ranks of the 223 city drivers, but council sources say that is unlikely to happen.

Chairman of the Southampton Taxi Consultative Council, Clive Johnson said: "We are delighted and appreciative of the council's decision and we look forward to being involved in deciding how best to proceed now."

Disabled campaigner Geoff Wilkinson said: "While I appreciate the difficulties that this has caused, I trust this will not delay the issue of the 40 extra licences."

A spokesman for Southampton City Council said: "Everyone who applied will get a letter saying the idea has been junked.

"But it was not a case of 'ask us for a taxi licence and you'll get one'. Only suitable applicants would have succeeded."