Councils making loss on parking

Tuesday 8th July 2008, 11:20AM BST

parking-restrictions.jpgSome councils in Shropshire are losing hundreds of thousands of pounds on parking services, new figures reveal today.

Data from the Department of Communities and Local Government show drivers in the county forked out almost £4.4 million in parking charges last year.

In 2006/07, Shrewsbury and Atcham Council raked in nearly £3.2 million, South Shropshire Council £413,000 and Telford & Wrekin £281,000.

Shropshire County Council made £177,000, North Shropshire Council £153,000 and Oswestry Council £147,000.

This compares with a total of £3.8 million in 2005/06 – showing an increase of 13 per cent.

The income came from parking services, including car parks, parking meters, resident permits and season tickets and fines.

After costs, including security equipment, the wages of traffic wardens and charges associated with operating and maintaining car parks, Shrewsbury and Atcham Council pocketed more than £1.1 million, South Shropshire £138,000 and Oswestry £26,000 last year to invest in local road improvements.

But the cost of running the services was greater than the funds collected from motorists in other areas, resulting in some councils making a net loss.

These included Shropshire County Council which made a loss of £714,000, Telford & Wrekin Council which was £100,000 out of pocket and North Shropshire Council which recorded a £6,000 loss.

However, West Midlands MP and former transport minister John Spellar said the figures showed some councils were not fleecing motorists.

He said: “The problem is some councils use parking charges to create revenue, which is highway robbery.

“Councils have to enforce parking restrictions to regulate traffic, but not by ripping off their residents.”

Local authorities have been warned not to use parking enforcement as a tool for raising revenue.

Any money that is made must be used by councils for parking, passenger transport, road and environmental improvement projects.

By Sunita Patel

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