Councils making huge profits from parking

SOME councils are racking up huge surpluses from their parking-charges, according to new figures.
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The nation’s councils had a total current account surplus of £565m from their on-street and off-street parking operations in 2011/12.

This is a £54m increase on the £511m surplus in 2010/11, figures from the RAC foundation show.

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Its report showed that just 52 of the 359 councils reported a deficit on their parking operations in 2011/12.

The figures come as the Government published new data showing councils are continuing to forecast to make £635m profit from parking charges and fines in 2013/14.

Local Government Secretary, Eric Pickles, pointed to these figures as evidence why town hall parking rules need to change.

He said: “This £635m municipal parking profit shows why we need to review and rein in unfair town hall parking rules. This Government has scrapped the last administration’s Whitehall rules which told councils to hike up parking charges and adopt aggressive parking enforcement.

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“But 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.”

Commenting on the RAC figures a Yorkshire council leader said surpluses generated would be spent on other transport services.

Labour councillor Peter Box, leader of Wakefield Council and chairman of the Local Government Association’s economy and transport board, said: “Parking revenue is spent on paying for parking services.

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“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.”

The authority with the biggest surplus before capital charges was Westminster Council in London, which made a surplus of £41.6m in 2011/12.

No Yorkshire authorities featured in national top 10 list which is dominated by London councils.

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