Council parking revenues labelled 'cash cow' as total hits nearly £1 billion

13 October 2023 , 08:30

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While councils' parking management involves operational costs, they receive money through charges and fines. (Image: PURPLE MARBLES / Alamy Stock Photo)

New figures reveal that English councils have raked in nearly £1 billion from parking operations, with AA analysis showing a surplus of £962 million for the 2022/23 financial year. This hefty sum includes £673 million from on-street parking and £289 million from car parks.

In comparison, the total for both types of parking was just £318 million during the previous 12 months, which was affected by coronavirus travel restrictions. Before the pandemic in 2018/19, councils recorded a surplus of £936 million, including £364 million from car parks.

AA's head of roads policy, Jack Cousens, commented: "Once again, official statistics show that councils have turned parking into a huge cash cow, not just a service to stimulate local trade and support workers and visitors."

He added: "However, the nearly £75 million, or 20% crash in the surplus from car parks must be particularly worrying for cash-strapped councils."

Cousens also pointed out that while factors like people working from home and the economic downturn are contributing to the decline, hikes in parking charges by councils have contributed and helped to drive more shoppers online. He warned: "In effect, many local authorities are killing the goose that lays the golden egg."

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While councils' parking management involves operational costs, they receive money through charges and fines.

A representative for the Local Government Association, which speaks for councils in England and Wales, explained: "Income raised through parking charges is spent on running parking services."

"Any surplus is spent on essential transport projects, including fixing the £14 billion road repairs backlog, reducing congestion, tackling poor air quality and supporting local bus services."

"Motorists can avoid fines by ensuring they observe parking and traffic rules that are only there to help all drivers get around and find parking safely, smoothly and fairly."

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Steve Charnock