Councils rake in record £1bn parking profit
That’s £2.7m a day... or £32 a SECOND
TOWN halls were accused of using motorists as ‘ cash cows’ last night after raking in a £1billion profit from parking charges in one year.
The staggering sum includes the cost of car parks and street permits after some cashstrapped local authorities hiked prices by up to 230 per cent.
It also includes the cash from parking fines issued by armies of traffic wardens working for more than 350 local authorities across the country.
Department for Transport figures show the surplus banked by councils for parking charges in 2018/19 – the latest year figures are available for – was a record £996million – that’s £2.7million a day or £32 a second. This was up from £929million the year before and £875million in 2016/17. A decade ago, the figure was just over £250million.
The data also reveals the Treasury received a record £7billion in vehicle excise duty (road tax) in 2019, again the latest year figures are available for. This was up from £6.5billion the year before. The amount of cash raised by fuel duty in that year remained stable at £27.8billion.
But despite the record sums, the amount invested in local roads fell. Spending overall dropped from just over £5.3billion in 2018/19 to £5.28billion in 2019/ 20, while spending on national roads increased from £4.8billion to £5.6billion.
The AA said drivers were being short- changed, particularly those in rural areas who used local roads more. President Edmund King said: ‘In short, for every £3 a car driver pays in tax, less than £1 is returned in investment to improve and maintain the nation’s vital road network.
‘We have never argued that all motoring taxation should be ring-fenced but would like to see more of this tax-take funding roads policing, crash prevention and initiatives to encourage the take-up of zero emission vehicles.
‘While councils take almost £1billion a year from parking, far too many of our local roads are pitted with potholes which cost drivers in expensive repairs and can cost the lives of those on two wheels. Drivers don’t mind paying their way but should get better and safer roads and services in return.’
Howard Cox, of the FairFuelUK campaign group, said: ‘Cash-strapped local authorities and the Treasury see motorists as the easiest and most reliable of cash cows. In return for the growing billions received from the tax-paying silent majority, perennially demonised drivers get diddly squat in return.
‘It’s time for some equality for the UK’s 37million drivers.’
Councils insist they do not make a profit on parking because the money is reinvested in transport and roads. But campaigners say motorists often see little benefit, given the state of many local roads.
The RAC’s Nicholas Lyes said: ‘These figures clearly show that, prior to the pandemic, the Government raised huge sums from fuel duty and car tax – and drivers will rightly be left wondering why that doesn’t always translate into good quality roads.’
David Renard, of the Local Government Association, said: ‘Income raised through onstreet parking charges is spent on running parking services.
‘Any surplus is spent on essential transport projects, including fixing potholes and tackling congestion, but it would take more than a decade and £10billion to tackle our current roads repair backlog.’
‘Drivers get diddly squat’
ONLINE and out-of-town shopping have undoubtedly contributed hugely to the British high street’s slump. But councils that bewail the demise of traditional retail cannot avoid a share of the blame.
By hiking parking fees, ostensibly to plug funding shortfalls, they are pocketing an astonishing £1billion a year in profits.
These tariffs are not only an exorbitant tax on drivers, but a crippling incidental levy on store-owners.
Why would car-reliant families (clobbered already by congestion charges and green taxes) go into town centres when they can park for free at a mall on the ring-road?
By treating hard-pressed motorists as cash cows, town halls are killing off the high streets they claim to want to protect.