Taxi ban for pub
Licensees are being warned that offering a free taxi service to customers could lead to prosecution.
The warning has come after a Gloucestershire licensee was banned by his local council from giving free lifts to his regulars.
Graham Jones, licensee of the Old Forge Inn, in Whitminster, has been told by Stroud District Council that driving a car "for reward" is illegal without a private hire or Hackney carriage licence.
A council spokesman said even though the service was free, it was still an offence.
"He is carrying passengers for reward because he will get more business as a result of the service," he said.
"We're happy our interpretation of the law is correct and would advise all licensees to talk to their insurers and council before offering lifts."
But Jones said: "We just wanted to save people being ripped off by taxis, but the council was looking to prosecute us unless we stopped with immediate effect.
"Things are hard enough in this business without paying more money for a taxi licence."
The licensee had been driving customers home for a year, before a local taxi driver reported him to the council.
However other councils appear to allow some licensees to operate a taxi service for their customers.
Anna Mathias, a lawyer at legal firm Joelson Wilson, admitted licensees giving customers a lift was a "grey area".
"But if they were advertising the service and going around picking people up, it would certainly be crossing the line," she said.