Council defends £800,000 parking profits

The RAC Foundation, which compiled the figures, say parking “is quite a money spinner” for some councils but South Tyneside Council say its charges are among the lowest in the region and “surplus money made from charges is reinvested back into highways and road safety.”

The figures show the council made a profit of £815,000 from parking services in 2019/20 – down three per cent from £836,000 the previous year, but more than double £329,000 in 2015/16.

Nationally, councils made a combined profit of £891m from parking in 2019/20 – down five per cent from £934m a year earlier.

RAC Foundation director Steve Gooding said: “Parking management is quite a money spinner for some local authorities.

“The surplus for 2019-20 is down a little on the year before which may in part reflect the impact of the first Covid lockdown which saw traffic levels plummet at the end of last March.

“Going forward there are likely to be many councils who are actually looking to cut parking charges as a way of encouraging more people to visit their high streets which are fighting for survival.”

The analysis, based on data from the Ministry of Housing, Communities and Local Government, reveals the vast majority of the 338 councils who returned figures reported a surplus on their parking operations.

A South Tyneside Council spokeswoman said: “Our parking charges are among the lowest across Tyne and Wear with a penny-a-minute rate for the first hour in the majority of our car parks. We believe these fees are fair and reasonable and offer good value for money.

“They are not set with the aim of making a profit, with the money raised spent on running parking services and implementing policy across the borough.

"This is essential to help keep our roads clear for emergency vehicles, to keep traffic moving and to ensure car parking spaces are available for both residents and visitors alike.”

She added: “Any surplus money made from charges is reinvested back into highways and road safety as well as maintaining, securing and improving our car parking facilities.”