English council parking profits set to top a billion pounds29 Jun 2019

£913 million budget estimate likely to be underestimate

English councils are predicting that, collectively, they will make a £913 million surplus – or profit – from their parking activities in the current financial year, 2019-20.

This is 4% more than the £877 million surplus councils budgeted for 2018-19, the actual outturn figures for which will be published later this year.

However, historically councils have underestimated the money they will make from on- and off-street parking activities – by between 9% and 10% over the past three financial years for which there is outturn data – suggesting the final profit for 2019-20 could actually top a billion pounds for the first time.

The numbers are calculated by taking all parking income – charges, residents’ permits, penalties – and then subtracting the day-to-day running costs of providing parking.

The RAC Foundation’s analysis, carried out by transport consultant David Leibling, is based on the budget figures provided by 343 English councils to the Ministry of Housing Communities and Local Government (MHCLG).

Of the 343 councils, 278 reported that they expected to make a profit whilst 65 predicted they would break even, incur a loss or their parking is managed by another authority.

Table: English councils parking operations surplus

£m 2015-16 budget 2015-16 actual

(% above budget) 

2016-17 budget 2016-17 actual

(% above budget)

2017-18 budget 2017-18 actual

(% above budget)

2018-19 budget 2019-20 budget % rise in budget 2019-20 on 2018-19
London 303 332

(10%)

340 379

(11%)

350 406

(16%)

413 446 8%
Rest of England 377 413

(10%)

403 440

(9%)

436 461

(6%)

464 468 1%
England total 680 744

(9%)

743 819

(10%)

786 867

(10%)

877 913 4%

 

Steve Gooding, director of the RAC Foundation, said:

“It would be no surprise at all if English councils soon breached the one billion-pound mark for the amount they make annually from parking, which is quite a windfall from a service that is intended to be all about managing traffic.

“Not every authority makes big money, some even run at loss, but where authorities are making money drivers might reasonably hope that some finds its way specifically into tackling road repairs not just on transport more generally.”

ENDS

Contacts:

Philip Gomm – Head of External Communications – RAC Foundation

020 7747 3445 | 07711 776448 | philip.gomm@racfoundation.org | 020 7389 0601 (ISDN)

Notes to editors:

This is a link to tables giving individual information for all English councils. In the first table the councils are listed alphabetically. In the second table they are ranked by level of budgeted surplus for 2019-20:

https://www.racfoundation.org/wp-content/uploads/English_council_parking_budget_tables_2019-20.pdf

 

The figures do not take into account any capital charges – either for capital expenditure on new car parks or interest and depreciation on existing car parks – that local authorities might incur as these are not included in the MHCLG tables. Also excluded is any allocation of corporate overheads.

There are some minor adjustments to some figures from previous years to include trading surpluses for those councils who treat off-street parking as a trading activity. These total around £4m overall.

In the case of Nottingham City Council revenue from the Work Place parking Levy has been excluded.

Also, figures for the National Parks are excluded even though they are in the MHCLG source tables.

Over time some local authorities merge their parking operations. Where we have noticed this take place historic data for individual councils has been added together. An example is Bournemouth, Christchurch and Poole which now reports a single combined figure.

Some councils routinely report nil values. This is likely to be where parking in that area is managed by another authority.

 

The RAC Foundation is a transport policy and research organisation that explores the economic, mobility, safety and environmental issues relating to roads and their users. The Foundation publishes independent and authoritative research with which it promotes informed debate and advocates policy in the interest of the responsible motorist.

The RAC Foundation is a registered charity, number 1002705.

All the Foundation’s work is available on its website:

www.racfoundation.org