Councils Rake In Millions In Parking Profits

Some councils are making huge surpluses from parking fines, according to the RAC Foundation.

During 2011/12 the combined amount of cash left over after money was spent on parking services, filling potholes, funding park and ride schemes, street lights and road improvements, was £412m.

This is a £54m increase in the surplus left over in 2010/11, said the foundation.

The authority with the biggest surplus, before spending on road infrastructure was taken into account, was Westminster Council with £41.6m in 2011/12.

Councils say the cash is for road improvements such as filling potholes

Second, with a surplus of £28.1m was Kensington and Chelsea with the north London council of Camden in third place with £25m.

Only Brighton and Hove and Cornwall councils broke into a top 10 dominated by London authorities.

The surplus figures come just days after a judge declared that Barnet Council in north London had acted illegally in setting parking charges to raise revenue.

RAC Foundation director Professor Stephen Glaister said: "For many local authorities, parking charges are a nice little earner, especially in London.

"Not all authorities make big sums. Several run a current account deficit and indeed of those with surpluses, many will see the money vanish when capital expenditure is taken into account.

"But the bottom line is that hundreds of millions of pounds are being contributed annually to council coffers through parking charges."

Eric Pickles: 'this profit shows we need to rein-in unfair parking rules'

Peter Box, chairman of the Local Government Association's economy and transport board, said: "Parking revenue is spent on paying for parking services.

"Any money left over goes towards transport services like filling potholes, concessionary travel, park and rides, street lights and road improvement projects.

"As the RAC Foundation report makes clear, many councils have to subsidise parking services as the cost is not covered by charges.

"Parking charges and fines help councils keep traffic flowing and pedestrians and motorists safe. They also help keep the roads clear for emergency services and business deliveries, and ensure people can park near their homes or local shops."

Local Government Secretary Eric Pickles said: "This profit shows why we need to review and rein in unfair town hall parking rules.

"Councils aren't listening, and local shops and hard-working families are suffering as a result. The law is clear that parking is not a tax or cash cow for town hall officers."

Councillor Daniel Astaire, Westminster City Council cabinet member for business, said: "Parking is about traffic management, tackling congestion and trying to implement positive benefits for businesses and high streets.

"If we stay in this Jurassic Age of pure rhetoric about cash cows and money making, innovation will be stifled and we cannot engage with motorists properly in order to find the best solutions that will benefit everyone."

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