Businesses have responded angrily to a suggestion by minister for local government John Healey that councils should raise parking charges in built up areas.
Speaking to the Local Government Association (LGA) yesterday, Healey said councils are not exploiting the “full potential” of parking charges in built-up areas.
But business lobby organisation the British Chambers of Commerce (BCC) reacted furiously, saying the idea would lead to added financial pressure on businesses.
“Charging more for parking will simply displace potential customers elsewhere where it costs less to park,” said David Frost, the organisation’s director general.
“Mr Healey’s comments go completely against his own department’s ambition to regenerate and attract people to urban centres.
“The real effect will be to drive customers away, reducing the viability of those businesses in town centres,” added Frost
Andrew Davis, director at the Environmental Transport Association (ETA) defended Healey’s comments, suggesting the idea would benefit both the environment and businesses.
“Local businesses often object to parking charges, but the car park that is constantly full because it is too cheap is not bringing custom to local shops.”
However, John Wright, national chairman of the Federation of Small Businesses (FSB), said the idea of customers walking to shops was ‘unrealistic’, adding that local shops would lose passing trade from motorists.
“These proposals are diabolical in respect of enabling local high streets and local businesses to survive. We found that where high streets are surviving there is free parking.”
Speaking in April, local government chairman of the FSB Roger Culcheth said: “Parking restrictions can be extremely damaging to local economies and ultimately counter-productive, as shops in town centres begin to close.”
“Spiralling town centre parking costs must be done away with permanently.”
© Crimson Business Ltd. 2008
