Cab drivers in north Oxfordshire could be poised to extend their strike action as the dispute with Cherwell District Council intensifies.

Revellers in Bicester and Banbury were left to find alternative ways home on Friday and and last night for the second weekend in a row.

The council provided buses - two in Banbury and one in Bicester - to take people home in the evening at a cost of more than £6,000.

And drivers tonight warned they could ratchet up action to include weekdays, unless the council backs down from a plan to get more taxis on the road.

Sikander Hayat, chairman of the Cherwell Valley Hackney Carriage Association, said: "There is still a lot of anger over the council's decision and the way they treat us over a number of issues. We feel badly let down by the council. Our members are losing money but we have to make a stand."

Hackney cab services in the Banbury, Bicester and Kidlington areas were disrupted when 83 drivers took their vehicles off the road. Private hire vehicles were not affected.

The council plans to "derestrict" the number of licences, so that anyone who passes a fit-for-purpose vehicle test can apply to run a taxi.

Strikers fear the move will have a serious impact on their earnings without improving services for the public.

They also claim that the council's decision to allow more taxis will create more pollution and congestion in town centres.

Mr Hayat said: "We decided against striking tonight following the Friday night and all-day Saturday action.

"But this is not the end of the fight. We are thinking of another weekend strike followed by a series of weekday actions."

Mr Hayat said following previous unsuccessful talks with council officials no further meetings were planned.

He said the association was taking legal advice and wanted the council to delay its decision until it had heard from their solicitor.

Mr Hayat said: "At the moment we have no plans to approach the council. It is up to them to come to us to try to resolve this."

The council insisted the decision would not be changed.

It added that only 11 per cent of local authorities in the country imposed limits.