£11m from car parking charges ‘not profiteering’ Council defends surplus after increase in fees last year
COUNCIL bosses have denied “profiteering” from drivers parking in Birmingham, after generating a surplus of more than £11 million.
The authority made £11.1 million in the 2016/17 financial year, the second highest anywhere in Britain outside London.
The surplus was recorded before a number of parking charges in the city centre soared by up to 140 per cent on April 1, in a bid to raise another £500,000.
The figures – analysed by consultants hired by the RAC Foundation – showed that only Brighton and Hove generated a bigger surplus outside London, with £21.2 million.
But Birmingham City Council said the money was ploughed back into service improvements.
It said higher charges were ultimately aimed at persuading people to use public transport.
“Surplus from parking revenue is reinvested in the service, improving roads and car parks,” a spokesman said. “This is not about making a profit but about maintaining a quality parking service, as well as encouraging greater use of public transport and the environmental benefits that will bring.”
Defending the price increases earlier this year, council assistant roads boss Kevin Hicks said: “Parking tariffs within the city centre are regularly reviewed as part of our wider transport strategy, which is focused on reducing car trips and the associated emissions that these trips produce, and to encourage people to use public transport.”
Speaking in March, city centre traders said they feared the increases would hit business.
Anas Zein, who runs Damascena coffee shop on Temple Row West, opposite Birmingham Cathedral, said: “The cost of parking is already ridiculously high and this is the latest in a long line of things that will have increased. We’ve never seen Sunday parking as a problem round here, so if it isn’t broke, don’t fix it.”
Nationwide, Westminster Council generated the biggest parking surplus, with £73.2 million.
Martin Tett, Local Government Association transport spokesman, said councils had to “strike a balance” when setting charges to ensure there were parking spaces available. He said: “Parking charges help not only keep the roads clear but also keep pedestrians, motorists and cyclists safe, and ensure people can park near their homes and local shops.”
Some £819 million was generated from parking across England, a ten per increase on the previous year.