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Councils were expecting £885 million from parking
charges
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Lockdown and suspension of fees hits council
coffers
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Difficult decisions ahead for council leaders
Councils across England are in for an economic shock as
they are set to lose millions in parking fees and charges
according to the AA.
Figures released to by the Ministry of Housing Communities
and Local Government today1 show that local
authorities were anticipating to bank more than £885 million in
parking fees alone, but lockdown and the suspension of parking
charges throughout the covid crisis period means councils will
not receive the income they budgeted for when they drew up their
plans for the year in February.
This has now put councils in a difficult position as they
decide what to do next. Many use parking charge income to pay for
road improvements and pothole repairs, so may be tempted to
reapply the charge as quickly as possible. However, as local High
Streets start to re-open many independent retailers are asking
councils to keep parking free so they have a better chance of
recovery.
Jack Cousens, head of roads policy for the AA says; “If
councils weren’t already under significant pressure, they’ll be
bracing themselves even more as they see a huge chunk of their
income for the year lost.
“For being so dependent on this income stream, councils are
now stuck at a crossroad; waive the fees entirely and absorb the
financial hit, or reapply them and risk hurting, or worse, losing
businesses that bring in business rates and jobs in their
towns.
“This loss of revenue should also act as a wakeup call to
towns and cities intent on banning drivers from their centres. If
they ban cars completely, they need to be prepared to lose a huge
chunk of a major income source.”
ends
NOTES TO EDITORS
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Figures on table provided taken from MHCLG data found
here: https://www.gov.uk/government/statistics/local-authority-revenue-expenditure-and-financing-england-2020-to-2021-budget-individual-local-authority-data
