23.12.13
Council parking ‘surplus’ of £594m – RAC Foundation
Local authorities in England made almost £600m from parking in the last year, a report from the RAC Foundation has stated.
Councils had a combined surplus of £594m in 2012/13, 5% up on the previous year. Even discounting interest and depreciation, the surplus would still be £460m. The largest surplus was in Westminster with £39.7m.
But the LGA said councils do not profit from parking and that the entire ‘surplus’ is spent on running parking services, road repairs, essential transport projects and subsidising buses.
RAC Foundation director Professor Stephen Glaister said: “It is a case of déjà vu. Once again English councils have made record amounts from parking. Yet overall spending on local roads has fallen by 9% over the past three years with road safety expenditure down by as much as 20%.
“The government’s recent decision to consult on changes to parking rules and regulations is timely and we have always argued that at the very least all councils should publish an annual parking report to explain how much money is collected from drivers and, just as importantly, where that cash is going.
“It might be that some of the extra ‘profit’ has arisen because councils’ costs for running parking services have been reduced but drivers need to know this.
“There’s no disputing the figures we have looked at. They are the numbers the councils themselves submit to central government. What’s more, council budgets show that the surplus for the current year is set to be higher still.”
But Cllr Peter Box, chair of the LGA’s Economy and Transport Board, said: “This report further peddles the myth that councils are using parking charges to raise money. The reality is that the average motorist is paying 30 times more to Whitehall in charges and taxation each year than they do to their town hall through parking.
“Councils are on the side of hard-pressed motorists by keeping a lid on parking charges. Many already publish annual parking reports to be open and transparent with residents and combat the deep-rooted misconception that they are being used to raise money.
“Councils do not make a profit from parking. All income from charges and fines are spent on running parking services and any surplus goes on essential transport projects such as bringing our dilapidated road network up to scratch and providing subsidised bus travel for children or elderly residents.”
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