Towns may lose £200,000 due to car parking losses

And Warwick District Council may come under pressure from Westminster to cut its charges and encourage people back to the high street.

A budget monitoring report to the district council’s executive committee identifies the estimated shortfall, caused by a fall in shoppers, as “the most significant area of risk”.

Leamington Chamber of Trade recently criticised Warwickshire County Council for increasing on-street parking fees - and doubling the 20p rate for a 15min stay - at a time when shops were struggling.

Local Government Minister Eric Pickles last week called on local authorities to cut parking charges.

He said: “Families and local firms face a parking nightmare under existing rules. Stressed-out drivers have to run the gauntlet of parking fines, soaring parking charges and a lack of parking spaces. These parking restrictions have hit small shops the hardest, creating ‘ghost town’ high streets which can’t compete with out-of-town supermarkets.”

A district council spokeswoman said the authority tried to take local factors into account and would be beginning consultation on proposed changes to charges in and out of car parks.

She added the district council used revenue to keep council tax down, while Warwickshire County Council used surpluses from on-street charges to pay for traffic projects, so cuts would have repercussions.

She said: “If charges were reduced then the surplus would reduce unless we cut costs which would mean a reduction in the enforcement of the on-street regulations, which is not what local residents are asking for.

“Given the financial situation the district council is looking to raise two per cent more income which means either charges go up, we get more people to park in our car parks or we charge for things not currently charged for.

“What Mr Pickles is saying might appear to be popular but if we can’t raise the funds via charges then something else will have to give.”