Councils making millions from parking fines - £565 million to be exact

In 2011-12, local councils in England made £1.4 billion from parking tickets and permits, of which £565 million was surplus – i.e. more than was needed to maintain transport-related services. This is £54 million, or 10% more, than 2010-11 figures.
The news comes in the same month that the Transport Secretary, Norman Baker, suggested that parking charges were not high enough to deter motorists from parking illegally.

Professor Stephen Glaister, director of the RAC Foundation, commented on the findings: “For many local authorities, parking charges are a nice little earner, especially in the Capital.

Not all authorities make big sums. Several run a current account deficit and indeed, of those with surpluses, many will see the money vanish when capital expenditure is taken into account. But the bottom line is that hundreds of millions of pounds are being contributed annually to council coffers through parking charges and the drivers who are paying them have a reasonable expectation to see the cash spent on improving the roads.”

The Government claims that the profit from parking fines goes towards improving transport services such as potholes and street lighting.

The research showed that London councils are making the largest profits, with 8 out of the top-earning 10 councils from the Capital. Brighton and Hove and Cornwall make up the rest of the top 10, earning £14.4 million and £7.9 million respectively. The council with the largest surplus was Westminster, with a surplus of £41.6 million. Only 52 of England’s 359 councils reported a loss from parking charges.

Defending the high surplus, Peter Box, Chairman of the Local Government Association’s Economy and Transport Board, said: “Parking revenue is spent on paying for parking services.

Any money left over goes towards transport services such as filling potholes, concessionary travel, park and rides, street lights and road improvement projects.”

The 1984 Road Traffic Regulation Act prevents councils from subsidising any of the other services they offer with money from parking fines, stating that they must directly reinvest the money they make into the transport system.

But estimates for 2013-14 would suggest the situation is unlikely to improve, with Community Secretary Eric Pickles claiming profits will reach £635 million. He commented: “Councils aren’t listening, and local shops and hard-working families are suffering as a result. The law is clear that parking is not a tax or cash cow for town hall officers.”

Whether you’re trying to find a space or looking for loose change to feed the meter, parking is often a hassle. Manufacturers and new companies like Parkatmyhouse know this and are keen to help out – even leading to the development of cars that can park themselves.