AN ANDOVER taxi firm has been told it must “immediately cease" trading after it was refused a licence to operate.

A&B Cars in Winchester Street is in talks to merge with Basingstoke-based Alpha Cars and it applied to Test Valley Borough Council (TVBC) for a licence.

The firm’s application was refused, but TVBC were unable to tell the Advertiser the reasons behind the rejection.

But today the council has handed the business a notice and put up a sign warning it that legal action could be taken if it does not adhere to the letter.

It understood that drivers are now being spoken to by managers but will be unable to work until the matter is resolved.

The notice on the window of the office reads: “You do not hold a Private Hire Vehicle Operators licence for the controlled District of Test Valley and therefore you must NOT operate Private Hire Vehicles in the Borough of Test Valley.

“With immediate effect you must cease all functions as an unlicensed Private Hire Vehicle Operator with the controlled district of Test Valley.”

The borough council has the option to take out a High Court injunction against the firm to ‘ensure its compliance’.

A council spokesperson said: “Test Valley Borough Council (TVBC) can confirm that it refused an application from Alpha Cars for an Operator Licence. The council may refuse an application for a number of reasons and further information about the licensing criteria can be found on the TVBC website and in the relevant legislation.

“Unsuccessful applicants have 21 days from the notice of refusal to submit an appeal to the local magistrates court.”

A&B Cars and Alpha Cars has been contacted for a comment.