Parking hikes threat

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. The councils involved claim the hikes are necessary in order to plug shortfalls in their budgets, which are a result of widespread cuts in local government funding.

However, the Forum of Private Business believes raising 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.

Forum head of campaigns Jane Bennett said: "Putting up parking charges might seem like an easy, convenient way for authorities to plug budget shortfalls. However, it could well prove to be a false economy because it will drive even more trade out of town centres."

She added: "Many town halls have kept parking charges down in order to boost trade. They have been rewarded with thriving town centres.

"We would urge the councils proposing to push up parking prices to follow this example instead."

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