Tony Dixon, manager of Coffea Caban in the Market Place, believes parking prices and restrictions are dissuading potential customers from coming into the shopping centre.

His views echo a warning issued by the Forum of Private Business (FPB), claiming parking charges are killing high street trade.

In particular, Mr Dixon has suggested opening the Market Place to parking on non-market days.

He said: "I'm not saying it should be free, but certainly cheaper parking in the Market Place would encourage shoppers to come into the centre.

"At the moment people are going into Sunderland because of its better parking and shopping facilities.

"Parking prices are deterring customers – and there's always a lot of parking attendants about."

The FPB is concerned that, while the Government is backing recommendations made by the Competition Commission to boost rivalry and protect small suppliers, parking fees are causing consumers to shun town centres.

A survey carried out by the CBI has revealed that high street retailers are experiencing the worst slump in sales in quarter of a century.

Although the impact of the credit crunch on consumer spending has been cited as a major factor – in addition to soaring food and fuel prices – the FPB believes charges are causing shoppers to reject high street shops in favour of out-of-town retailers providing free, on-site parking.

South Tyneside Council's stance is that entry to the Market Place is for access and loading only.

And opening it to vehicles would compromise road safety and take away an important amenity.

A council spokesman added:"We want to see our town centre businesses thrive, and that means attracting shoppers to the borough.

"We recognise the level of parking charges and the quality of our
facilities are major factors in how appealing South Tyneside is to shoppers.

"That is why we work hard to keep parking charges to a minimum.

"Long-stay charges in our town centres are the lowest in Tyne and Wear, while short-stay prices are the second lowest."