Petersfield cabbies are up in arms over a new Taxibus service launched by South West Trains (SWT) two weeks ago.

Taxi drivers claim the new scheme is hitting them hard, putting the future of private cab firms in the town at risk.

Barry Winter, the chairman of Petersfield taxi association, told The Herald this week: "We are angry because we are losing a lot of trade."

He said taxi drivers had to pay £196 per car per year to SWT to use the station forecourt, and added the train company had not consulted taxi firms before launching its own rival Taxibus service.

The new service will take passengers to Petersfield station and back for £1 each way, but users must book in advance.

And the service is only available from early morning until mid-evening on weekdays.

Mr Winter said if taxi firms went out of business it could lead to a shortage of late-night and weekend cabs in the town.

"We're out here seven days a week, 24 hours a day," he said.

"We do the pub trade on a Friday and Saturday night. Who will do that if companies go bust? They [SWT Taxibuses] won't be here Saturdays and Sundays, or on Christmas Day and Boxing Day, so people will have to not drink, or walk home."

He added: "We want to work with SWT but the way they are doing this at the moment, no way.

"You could understand the need for it in Havant or Portsmouth, but not a small country town like Petersfield."

A spokeswoman for SWT said the company felt there was room in the town for both types of transport.

"The Taxibus service is not a taxi or a bus, it is somewhere in between. The Taxibus is exclusively a pre-booked service through our call centre. It is not a turn-up-and-go service like taxis. You will not be allowed to use the Taxibus unless you have called in advance," she said.

She added the service, unlike taxis, would not necessarily go directly to a passenger's home if other passengers were using the service.

"The Taxibus only covers a certain area and only goes to and from the station," she pointed out, adding: "We are trying to improve public transport for train passengers."