An alarming 7% more than they earned the previous financial year!
English councils raked in £930 million from parking operations in the financial year 2018/19, an alarming 7% more than they earned the previous financial year!
Combined together, councils in England made a total surplus of £930m in the 2018/19 financial year just from parking operations, reporting an increase of 7% compared to figures from 2017/18 and up 41% in comparison to figures from the 2013/14 financial year when they raked in £651 million.
A total of 353 local authorities in England reported their parking revenues to central Government, receiving a gross income of £1.746 billion from both on-street and off-street parking operations in 2018/19.
From this, £454m came from penalties – a 6% increase on last year’s figure of more than £428m. These figures don’t include the £9.7 million made from Nottingham’s workplace parking levy or any parking revenues from national parks.
Analysis by the RAC Foundation of figures reported to the Ministry of Housing, Communities and Local Government, £816 million was spent on running council parking operations during the same 2018/19 financial year which doesn’t include any interest payments or depreciation on capital assets such as car parks.
These figures reveal a difference between the income and expenditure of £930 million net operating surplus – this would be classed as ‘profit’ if the councils were private companies.
From the 353 councils in England who were analysed, just 41 reported a net loss from their parking operations.
As usual, it’s councils in London that generate the most net income from parking operations, with Westminster top of the list on a £69.2m net surplus, followed by Kensington and Chelsea with £37.3m and Wandsworth at £26.3m.
“Every year the Ministry of Housing, Communities and Local Government produces their tally of English councils’ income from, and expenditure on, parking,” commented Steve Gooding, director of the RAC Foundation, adding: “Because the official numbers exclude the cost of servicing parking-related capital investment funded from borrowing, the resulting surplus of income over costs might be overstated for some councils.”
According to Mr Gooding, penalties now seem to account for almost half of all on-street parking income. Motorists will be shocked and surprised to find that whilst parking income climbs, the amount of money spent by councils on routine road maintenance has been going in the opposite direction.
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