Council defends £520,000 parking profits

The RAC Foundation, which compiled the figures, say parking “is quite a money spinner” for some councils but Sunderland City Council say the money is a “surplus, not a profit” and the cash allows it to reinvest in local traffic management schemes as well as parking facilities.

The figures show the Sunderland City Council made £520,000 in profit from parking services in 2019/20.

That was down 18% from £631,000 the previous year – though in 2015/16, the council were £78,000 in deficit.

Nationally, councils made a combined profit of £891m from parking in 2019/20 – down five per cent from £934m a year earlier.

RAC Foundation director Steve Gooding said: “Parking management is quite a money spinner for some local authorities.

“The surplus for 2019-20 is down a little on the year before which may in part reflect the impact of the first Covid lockdown which saw traffic levels plummet at the end of last March.

“Going forward there are likely to be many councils who are actually looking to cut parking charges as a way of encouraging more people to visit their high streets which are fighting for survival.”

The analysis, based on data from the Ministry of Housing, Communities and Local Government, reveals the vast majority of the 338 councils who returned figures reported a surplus on their parking operations.

Cllr Rebecca Atkinson, Sunderland City Council’s cabinet member for dynamic city, said: “The council is not making a profit from car parking charges, it is running a surplus.

"This allows us to reinvest in local traffic management schemes as well as parking facilities, which is exactly what has been done.

“Examples include, refurbishment works at St Marys car park, upgrading pay and display machines, implementing Community Parking Management Schemes and extending the council’s previous free after three parking offer to free after three five days a week, Monday to Friday.

"The council has also introduced daily rates in some car parks, offering more choice and flexibility to our customers.”