Parking Charges Could Hit High Street Trade

Councils could kill off high street trade if they hike town centre parking charges, a small business support organisation has warned.

In recent months, local authorities across the UK have proposed hefty increases in the charges they impose on motorists for parking on streets and in council-owned car parks.

Areas affected include Burnley, Nottingham, Shrewsbury and Cornwall, and in some cases, increases of 150% have been tabled by town halls.

The councils involved claim the hikes are necessary in order to plug shortfalls in their budgets due to widespread cuts in local government funding.

However, the Forum of Private Business believes raising the rates could put small firms out of business as shoppers are driven away from the high street and towards out-of-town supermarkets and retail parks, which enjoy ample free parking.

The not-for-profit support organisation has also pointed out that the move will hit small traders at a time when they are facing the prospect of a potentially damaging downturn in trade next year, due to the forthcoming VAT rise.

The Forum’s head of campaigns, Jane Bennett, said: “Simply putting up parking charges might seem like an easy and convenient way for local authorities to plug their budget shortfalls.

“However, it could well prove to be a false economy as it will drive even more trade out of town centres, leading to more empty units, fewer visitors and lower amounts raised through business rates.”

“We would urge the councils who are proposing to push up their parking prices to think again and follow this example instead.”

The Forum has previously campaigned against the Workplace Parking Levy, which was initially introduced by Nottingham City Council but could now be implemented by other authorities around the UK.

The scheme involves charging town and city-centre businesses for parking spaces they provide for their staff.

In Nottingham, it will supposedly pay for transport infrastructure improvements but the Forum has argued that smaller firms can ill-afford yet another hefty tax in order to subsidise the incomes of their local councils.

(BMcN/GK)