Parking firms’ profits soar – as drivers suffer

‘Aggressive’ operators at NHS hospitals make millions

‘Charge on people who are unwell’

PRIVATE parking firms were accused of treating motorists as ‘cash cows’ yesterday as they unveiled soaring profits.

The companies, which have faced criticism for overzealous practices, run thousands of car parks at hospitals, shopping centres, motorway services and train stations.

Pre-tax profits at Parking Eye more than doubled in two years from £6.58million in 2016 to £13.59million last year.

The company’s 3,500 sites include more than ten major hospitals and numerous other NHS premises.

But while at some sites it has an agreement where the NHS trust keep the revenue from parking charges, it makes money from ‘enforcement’ – keeping all the cash from fines it issues. This has led to accusations it has aggressively pursued motorists over minor offences.

Several more parking operators criticised for their treatment of motorists have also unveiled healthy returns.

Euro Car Parks revealed its pre-tax profits rose by 70 per cent year on year from £2.5million in 2017 to £4.2million last year.

Britannia Parking Group, which had a turnover of £14.8million last year, saw its pre-tax profits leap more than threefold from £196,000 in 2016 to £714,000 in 2018. APCOA, the UK’s largest private parking firm, made £822,000 profit last year after two years of losses.

The figures were detailed in annual reports published this month by Companies House.

They follow renewed anger over hospital parking charges, with 53 of 124 NHS trusts revealing in December that they had increased fees over the previous 12 months.

Some more than doubled – with Shrewsbury and Telford Hospitals, whose parking is run by CP Plus, putting up the cost of a stay over five hours from £3.50 to £8.

Rachel Power, chief executive of the Patients Association, said: ‘The huge profitability does raise questions over whether enough of this revenue is going to hospitals.

‘Charges for car parking at hospitals are a charge on people who are unwell.’ Sara Gorton, of trade union Unison, said: ‘Too many private firms view hospital parking as a cash cow and it’s morally wrong.’

The fairness of penalty charges has also been questioned. At hospitals where the NHS trust keeps parking charge revenues, such as the Royal Preston, the private contractor – Parking Eye – has to make money through fines and has been accused of pursuing patients for overstaying parking for a few minutes. One got a £70 penalty for being 13 seconds over.

Euro Car Parks is said to have fined a disabled couple for parking in a parent and child space because the disabled bays were full.

Britannia Parking Group has been accused of fining motorists who paid for parking but typed in their registration numbers incorrectly. The RAC’s Nicholas Lyes said: ‘It will come as little surprise that private parking operators are making soaring profits. Reports of overzealous enforcement and aggressive behaviour of debt collection mean trust is woefully low.’

The British Parking Association, representing private firms, said hospital car parks need to be managed because demand for spaces outstrips supply – and charges are necessary to cover the cost of management and maintenance.

Parking Eye said its profits had grown because ‘its client base has grown considerably over the last three years’, and stressed that it follows the British Parking Association’s strict code of conduct.

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