West London councils make £90million surplus from parking fines and charges Councils are enjoying record revenues from parking fines and charges at a time when spending on roads has fallenCouncils in West London are raking in nearly £90million from parking charges and fines, according to the RAC Foundation.
The record surpluses were found when running costs were deducted from the parking charges and penalty notices income. In 2012-13 local authorities in England made a profit of £594m from parking activities, the organisation said.
Seven of the 10 greatest surpluses were in London with the largest being Westminster with a staggering £39million, Kensington and Chelsea came second with £30m and Hammersmith and Fulham came fourth with £19m.
Professor Stephen Glaister, director of the foundation, said: "It is a case of deja 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."
The foundation said the record revenue came as spending on roads fell but the Local Government Association (LGA) said councils were on the side of motorists.
Leith Penny, Westminster City Council’s Strategic Director for City Management, said: “This figure is not a profit, it’s a surplus from parking operations and we are actually reporting a smaller surplus than last year.
“Parking income is ring-fenced and we are only allowed to spend it on things directly related to transport, to keep the roads of central London running. More than £10million of that parking surplus is used to pay for concessionary travel for the elderly.
“We try to be clear about where the money goes and produce an annual report so that people who pay for on-street parking know where that money goes. Transparency is very important to us and to be clear that we are not making a profit, it is being fed back into services.”
Peter Box, chairman of the LGA, said many councils already did publish such reports "to be open and transparent with residents and combat the deep-rooted misconception that they are being used to raise money". He also insisted councils did not make a profit from parking because surplus income was spent on projects such as road improvements and subsidised bus travel.
Councils' combined "profit" of £594m was up 5% on the equivalent figure for 2011-12, which was £565m. However, 52 of the 353 parking authorities across England reported a deficit, according to the RAC Foundation, which is a motoring research charity. It said budgets submitted to central government for the current financial year showed the surplus for 2013-14 was likely to be even higher.
The only areas outside London to make the top 10 were Brighton and Hove, Nottingham and Manchester.
In September, the government announced plans to tackle authorities making a profit from parking. Communities Secretary Eric Pickles said cameras used to catch people parking illegally could be banned and unnecessary yellow lines could be reviewed.
A spokeswoman for the Department for Communities and Local Government said: "Parking fines have become an unjust form of arbitrary taxation, corrupting Britain's justice system and fleecing innocent drivers. This government is taking action to rein in the town hall parking bullies."
A Kensington and Chelsea Council spokesman said: “We spend the money we receive from parking on highways maintenance, which helps motorists. It is also spent on freedom passes, taxicards and other help for the elderly, disabled and vulnerable to get around in their neighbourhood.”
Hammersmith and Fulham council has still to comment.
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http://www.getwestlondon.co.uk/news/local-news/west-london-councils-make-90million-6441960
