Neon signs are to remain on top of taxis in Wolverhampton after plans to remove them were branded “ludicrous”.

A barrage of opposition from private hire drivers has forced Wolverhampton City Council to do a U-turn on its proposals.

It was revealed in March council chiefs and the Department of Transport thought the eye-catching rooftop signs were not a necessity because those drivers are not allowed to ply for hire.

But the plans angered some taxi companies, which feared that they could have implications for public safety as passengers might not recognise their vehicles from normal cars. Many firms threatened to leave the city for good and take their business elsewhere unless the plans were scrapped.

A report going to the licensing committee on Wednesday now says “the majority” of drivers and operators want the signs to remain in place.

Malcolm Roberts, owner of Three ‘A’ Taxis, which operates 28 private hire cars, said: “The idea was simply ludicrous.

“I paid around £90 for each of the signs on the rooftops of our 28 taxis, I would have been fuming if I was told to take them down.

“This is great news. They let the customers know they have the right taxi, and keep people safe. Otherwise you could end up in the wrong vehicle.”

Instead of taking up the policy the council is sending out fresh guidance on the signs to ensure drivers maintain them properly.

The guidance says all signs must be illuminated, have a name and telephone number of the taxi firm, have council logos at both ends, and do not have any cracks or holes.

Councillor Paddy Bradley, cabinet member for regeneration, said: “If I was consulted on it, I’d have said it was ridiculous myself.

“Taxi drivers need to have these signs to promote their business. It also reassures the public.”

The decision is the latest move by the ruling Tory-Liberal Democrat alliance to overthrow policy developed by the old Labour administration.