Council nets £6m parking charges profit

Parking is currently free for two hours at 17 Southampton car parks

Almost £6m profit from car parking charges was made by Southampton City Council, government figures have shown.

Figures show that the local authority saw increases in both car parks and on-street revenues in 2024/25 to obtain an income of more than £13m

The Labour-run council said decisions on parking fees were based on location, demand, turnover and alternative options, as well as the financial income.

Conservative opposition group leader Peter Baillie said the authority's policies were "exceptionally short-sighted" and damaging for businesses.

Data released by the Ministry of Housing, Communities and Local Government revealed Southampton City Council's net income after expenditure for off-street car parks in the last financial year was £3.6m, while on-street parking brought in a surplus of £2.3m.

These totals were up from £3.6m and £1.6m, respectively, on the previous year.

The city council's car parking income in 2024/25 , before taking into account any costs for employees and running expenses, was £13.230million.

Nationally, councils made £1.2bn in profit last year, with 54% of the surplus coming from authorities in London.

Southampton City Council said the main reason for car park charges was to "manage demand".

"After costs are deducted, revenue from on-street parking is ringfenced for transport and highway uses, while off-street revenue goes into the council's general fund.

"These figures are one factor in the decision making process alongside things like location, demand, turnover, and alternative options," it said.

In April, the city council was criticised for introducing new parking charges in district centre car parks.

The council said it would monitor and review the parking demand and footfall in the district centres for six months before conducting a review.

Mr Baillie said eliminating parking charges in the local district car parks would "promote shopping and to encourage people coming into the city centre to help the businesses in the city centre".

"They are going to cause a lot of business closures and job losses and they are the absolute worst polices we can have in this particular economic climate."

Earlier this year the government approved a request from a city council to extend financial support it was given to prevent its financial collapse.

Southampton City Council was given special flexibility in 2024/25 to use capital resources through borrowing to cover revenue costs.