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Local authorities in England making almost £600m from parking, says RAC Foundation

Although not all councils made a large surplus, very few lose money on their parking activities. Just 52 (15%) of the 353 parking authorities in England reported negative numbers.

The figures are calculated by adding up income from parking charges and penalty notices, then deducting running costs.

Even after allowing for capital charges (interest and depreciation), the combined surplus in 2012-13 was still £460 million.

This is a 12% increase on the £412 million figure for 2011-12. 

The data, studied for the RAC Foundation by David Leibling, comes from the annual returns that councils make to the Department for Communities and Local Government.

The authority with the largest surplus in 2012-13 was Westminster with £39.7 million. The four biggest earners were all London authorities with only Brighton, Nottingham and Manchester breaking into a top ten dominated by councils in the capital.

 

Surplus before capital charges (£ thousands)

Local authority

2009-10

2010-11

2011-12

2012-13

Ranking by

2012-13 surplus

Westminster

34,558

38,196

41,599

39,705

1

Kensington & Chelsea

21,765

21,130

28,148

30,437

2

Camden

10,460

21,067

24,975

23,531

3

Hammersmith & Fulham

14,071

16,649

19,504

19,395

4

Brighton & Hove UA

11,741

12,744

14,436

16,254

5

Wandsworth

12,189

14,429

16,120

15,887

6

Lambeth

1,542

7,016

5,831

12,004

7

Nottingham City UA

3,271

3,661

3,251

11,791

8

Manchester

2,869

1,914

6,325

8,776

9

Islington

4,991

5,600

10,890

8,216

10

Nottingham’s surplus has grown significantly because of the introduction of the Workplace Parking Levy. If income from the levy – which is ring fenced to be spent on the city’s tram system – were deducted then the surplus would be £4.4 million.

Budgets submitted to the DCLG by local authorities suggest the surplus (before capital charges) for the current financial year will be higher still at £632m.

Professor Stephen Glaister, director of the RAC Foundation, 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.'

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Written by Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.

Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.

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