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Report of Head of Development and Corporate Landlord Author: John Backley E-mail : john.backley@southandvale.gov.uk Wards affected: all |
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Cabinet member responsible: Andrew Crawford Tel: 01235 772134 E-mail : andy.crawford@whitehorsedc.gov.uk Date: 4 February 2022 |
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Car park fees and charges for 2022/23
Purpose of Report
1. This report provides information to help cabinet decide whether it chooses to amend the car park fees and charges in the Vale of White Horse District Council’s three market towns of Abingdon, Faringdon and Wantage.
2. Reviewing the car park fees and charges each year is in line with paragraph B (5) of the council’s car park pricing policy which is attached as appendix 1.
Corporate Objectives
3. The provision and pricing of car parking supports the Vale Council’s Corporate Plan 2020/24 and strategic objective three (building healthy communities) by encouraging the switch to more active sustainable travel options, improving air quality and supports objective four (building stable finances) by maximising income available to the council.
Background
5. At the meeting on 7 August 2020, cabinet agreed to maintain the free parking period of up to two hours, increase all car parking fees for stays of over two hours by 40p and to increase the cost of permits by ten per cent. These came into effect on 1 December 2020. Following formal consultation, on 5 February 2021, cabinet agreed to increase the cost of residents’ parking permits by ten per cent over the following three years (existing holders only).
6. The parking policy is attached as appendix 1. The policy was amended in July 2011 to reflect the fact that the introduction of the free two hours meant that the income from the service would not meet the expenditure. There is currently no requirement to set fees at a level so that the income meets the expenditure.
7. However, the proposals seek to reduce the net expenditure over the five-year Medium Term Financial Plan (MTFP) period so that overall the total income meets the expenditure, and the account operates a cost neutral position by the end of the MTFP. A further assumption is that Cabinet will wish to continue to provide car parking facilities in our market towns for the benefit of our residents and to help secure the viability of our central commercial areas based on current and projected demand for each car park. A balance therefore needs to be struck between taking reasonable steps to reduce carbon emissions with the need to ensure the sustainability of our market towns.
9. Reviewing the income and expenditure over five years allows cabinet to take a medium-term view of how income and expenditure are likely to change and see whether the account is running at a loss or with a surplus.
10. Table 1 below summarises the actual income and expenditure for the last financial year 2020/21 and the forecast up to 2025/26 and shows that the car park ‘account’ made a net loss of some £447,497 in 2020/21 and the deficit is due for the foreseeable future. This deficit includes for a loss of income (worst case scenario) from the introduction of parking spaces for electric vehicles as take up is forecast to be low in the first few years.
Table 1 Car park income and expenditure over a five-year period
To note this account includes for the depreciation and support costs of car parks only.
Car park usage
12. The results show that the majority of the Vale car parks are operating at below 60 per cent capacity for the majority of the time on the days. The exceptions are the town centre car parks such as Civic, Cattlemarket, West St Helen in Abingdon and Portway in Wantage.
13. The majority of car park users stayed for a short duration in 2020. While this trend has continued in 2021 the surveys show a general increase in usage and the majority of users staying under two hours. There was noticeable increase in usage in the 2020 survey of car parks close to public open spaces such as Hales Meadows and Abbey Close, Abingdon.
Proposals
14. The car park policy requires a review of the fees and charges each year. Officers have provided forecasts for the council to consider in light of the account running at a current loss. These proposals are set out below (net of VAT).
A. Reduce free parking from two hours to one hour and introduce a charge of £1.50 for up to two hours
15. Rather than have parking for free for up to two hours, this option only allows free parking for up to one hour and parking for up to two hours would cost £1.50. Officers consider that the majority of current users who stay for two hours at no charge would take advantage of the free one hour and the increase in income would be limited. Nevertheless, officers estimate an increase in income of £178,000 per annum based on 25 per cent of current free sales paying £1.50 for up to two hours, plus a £10,000 increase in ECN income totalling £188,000 per year. This would still produce a deficit of £177,114 in 2022/23.
16. The change from a free two hours to one hour no charge would not be implemented in Southampton St. car park, Faringdon due to the potential displacement of vehicles to the large supermarket car park if the free two hour parking was reduced.
17. This increase in income is based on current parking habits and the actual income is dependent on whether a quarter of those people who currently take a free two-hour ticket would pay £1.50 to park for up to two hours. Parking for free for up to one hour brings the fee in line with free parking in South Oxfordshire.
B. Increase all current fees by 40p
18. Officers estimate that separate from any change to the free two hours, if other fees (up to 3, 4, 6 hours and over) are increased by 40p (for example for up to three hours increase from £1.90 to £2.30) income would increase by an estimated £30,000 per year based on current usage.
C. Parking permits
19. Cabinet agreed in August 2020 for the phased removal of the discount on residential permits to bring them in line with parking permits phased over four years and commencing no later than the 1 December 2020. Cabinet also agreed to stop selling new residential permits from the 1 October 2020. In February 2021 following consultation Cabinet agreed to increase the cost of residential parking permits by ten per cent over the next three years (2022, 2023 and 2024). Cabinet also agreed for other parking permits to increase by ten per cent.
20. Officers have received comments from existing permit holders that they no longer require a parking permit for each day as post Covid working patterns are more flexible. Post Covid, some users are more likely to be working from home and coming into town centre offices less regularly.
21. Officers consider that the reduced cost offered by a parking permit is advantageous and attractive to users and no further change to the cost of permits is recommended.
22. However, traditionally, the permit allows for parking in the specified car park, plus any other equivalent or cheaper car park in the same town. Therefore purchasing a permit for Mill Street car park, Wantage would also allow parking in Limborough Road car park. Similarly permits for Charter car park, Abingdon also allow parking at Rye Farm and Hales Meadow car parks.
23. Saba manage and issue the permits on behalf of the council. They aim to optimise use of the car parks with a balance of permit holders and casual users. In order to maximise the sale of permits and encourage sales to potentially more residents working from home, Saba request for permits to be assigned specifically to a car park. The usage data can then be used to see what spaces are available and maximise sales for each car park as a mix of permits and casual fees.
24. Officers suggest that all permits are made non-transferable to any other carparks and therefore only valid for the specific car park for which they are issued.
D. Other considerations – no change
25. The current levels of ECNs are being amended as a statutory requirement as part of the change to enforcement under civil parking legislation and subject to a separate report.
26. Officers recommend that all other aspects of the fees and charges such as the free parking for disabled and motorbikes remain the same. In addition, it is recommended that free parking on a Sunday is maintained (apart from Abbey Close, Hales Meadow and Rye Farm car parks which already charge on a Sunday).
27. All of the proposals are summarised in the table below (stand alone or in certain combinations) in order of additional income with the greatest first.
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Proposal |
Description |
Additional Income pa |
Estimated deficit against expenditure |
Change to car park order (full consultation) or schedule |
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No change to current fees |
|
Continued deficit of over £365,114 per year |
Schedule |
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A |
Reduce free parking from two hours to one hour and introduce a charge of £1.50 for up to two hours (except Southampton St car park, Faringdon)
|
£188,000 |
£177,114 |
Schedule with communications campaign |
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B |
Increase all current fees by 40p
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£30,000 |
£335,114 |
Schedule |
|
C |
Permits made non-transferable between car parks |
N/A |
N/A |
Schedule |
Monitoring the impact of the removal of free parking period
28. Officers propose that a number of indicators are monitored to measure the financial and usage impact of the change to the car park fees. We already have data for the number of free ticket parking, so we can establish a base line for the number of users staying for up to two hours (from the number of free tickets taken) for a set period. We will then compare the number of users paying for up to two hours when the reduction to one hour is introduced. For budget monitoring purposes we already keep close track of income from ECNs, fees paid at the machine and by phone and the income from permits. Officers receive monthly reports showing the income from ECNs, fees and permits compared to same month previous year.
Economic development implications
29. Appendix 3 compares car park fees and charges to neighbouring local authorities and shows that a fee of £1.50 for up to two hours is very competitive. However, there are private operators that provide free parking in Vale, such as at Sainsbury’s in Wantage (for up to two hours), Waitrose in Abingdon and Faringdon (also for up to two hours).
30. Businesses in Vale market towns have struggled in recent years with the growth of nearby shopping centres in Oxford and Didcot, and the rise of online shopping. Although the cost of short stay parking proposed is not significant, when compared to some other neighbouring car parks, many businesses are likely to hold concerns that shorter periods of free parking will discourage local people from making visits to town centres, particularly those that require visits to multiple businesses. Reductions in the duration of the free period could also be detrimental to town centre businesses that require longer visit times, such as cafes, gyms, hairdressers, and restaurants.
31. Over the last five years, respective Vale based Chambers of Commerce, Town Teams, business groups and individual businesses have continually asserted concerns over parking within Vale. Concerns range from a lack of available spaces to illegal parking, to a lack of affordable long-term spaces for employees.
32. High Street businesses remain in a challenging position following the impact of the Covid-19 pandemic. Google Mobility data for Oxfordshire indicates trips to retail and recreation sites in the County were down by 19 per cent in the period from 9 December to 20 January 2021 (when measured against baseline evidence from February 2020).
33. Any actions that could negatively affect footfall to Vale’s town centre retail locations is likely to cause concern within the business community, particularly as they seek support from the community to recover from the pandemic trading challenges.
34. Within the “Proposed changes to off-street parking in Vale of White Horse” consultation report of March 2021, respondents’ concerns were noted of the decline in footfall to Vale high streets, and comparisons were made to the availability of free parking in nearby areas such as Witney. Many respondents linked parking charges with town centre footfall.
35. It is important to note there is a lack of robust evidence for the local area that can be used to link car parking charges to footfall in isolation of other factors. Car parking charges should be considered as one of a complex number of components that influence town centre vitality, including: availability of car parking spaces, safety, traffic flow, signage, facilities, proximity to out of town retail sites, and overall business mix and business activity within the area.
Financial Implications
36. Any council decision that has financial implications must be made with the knowledge of the council’s overarching financial position. For Vale, the position reflected in the council’s medium-term financial plan (MTFP) as reported to Full Council in February 2021 showed that the council is due to receive £2.6 million less in revenue funding than it plans to spend in 2021/22 (with the balance coming from reserves including unallocated New Homes Bonus).
37. This funding gap is predicted to increase to over £5 million by 2025/26. As there remains no certainty on future local government funding, following the announcement of a one-year spending review by government, and as the long-term financial consequences of the Coronavirus pandemic remain unknown, this gap could increase further. Every financial decision made needs to be cognisance of the need to eliminate this funding gap in future years.
38. Any changes to the fees will involve a cost to update the software in the car park machines, to amend the tariff boards and publishing notices in the car parks amounting to up to £6,000. These costs can be met from existing budgets. Officers recommend that we take the opportunity to replace the tariff boards at the machines which would cost an estimated £20,000 and require a growth bid to be agreed.
39. If agreed, officers estimate the additional income generated from options A and B (reduced free hour and increase in fees by 40p) as £218,000 per year which will be reflected in the 2022/23 budget.
Legal Implications
40. The purpose of having car park orders under Section 32 of the 1984 Road Traffic Regulation Act (RTRA) is for ‘relieving or preventing congestion of traffic’. The council has no legal powers to set parking charges at a higher level than that needed to achieve this. The council meets this requirement by having off-street car parks which are accessible and well used which means that people do not park on the highway which may cause traffic to be held up.
41. The legislation allows for tariff changes and minor changes to the charging period to be made by a simple process by way of a Variation Order. This applies to all options A, B and C. This requires a notice in the car park that the tariff change relates to and in the local newspaper. We must allow 21 days before the new fees come into effect.
42. If cabinet agree to implement any alternative options (such as parking on a Sunday) this will require the making of a new order. Doing this would be in accord with the general duty upon the council under section 122(1) of the 1984 Road Traffic Regulation Act (RTRA), to ensure the provision of suitable and adequate off-street parking facilities and “secure the expeditious, convenient and safe movement of traffic”.
43. The Road Traffic Regulation Act 1984 grants the power to the council to make an order. The 1984 Act, together with the Local Authorities’ Traffic Orders (Procedure) (England and Wales) Regulations 1996 (LATO), sets out the procedure we must follow. The Vale is required to publish the proposed order in the car park and in the local press. The Vale must also consult with the county council (who must consent to the order) and other appropriate organisations including the Police. Cabinet must consider all representations received before making the order.
44. If required, Cabinet will need to authorise the Head of Legal and Democratic to prepare and publish a draft order under the RTRA and to agree for the Head of Development and Corporate Landlord to carry out the necessary consultations in accordance with the requirements of the Act and the LATO and to report back to cabinet on the responses received after the end of the consultation period which is normally 28 days. Officers would aim to bring a report to cabinet in June 2022 to consider any objections and representations and decide whether or not to change the order in light of these.
45. If cabinet agree changes by June 2022, these can be done to be implemented at the latest by 1 August 2022.
Equality and diversity
46. The car parks continue to offer up to five per cent of the total number of spaces as extra wide spaces for disabled drivers in line with national standards, but this may be more or less depending on location and demand. There is no charge to park when displaying a valid blue badge in any space.
47. The equality officer requests any decisions to be mindful that by increasing the charges by too much we are not disadvantaging people with protected characteristics.
Risks
48. Officers have included a financial risk factor in their calculations for estimating the income from car park users paying to park rather than park for free. The main risk is that people will choose to shop elsewhere and that the increase in income will be less than estimated. This will thereby impact on the businesses in the town if the number of visitors to the towns reduces and these are to be monitored as described above.
49. Currently levels 3 and above of Charter car park in Abingdon are closed to the public. The loss of income from the Charter car park is built into the estimations for changes in income.
51. Oxfordshire County Council started enforcing on street parking on 1 November 2021 (civil parking enforcement CPE), therefore the increased risk of road users parking in the street will be mitigated by efficient on street enforcement. In other locations where CPE has been introduced, councils have seen increase usage as drivers are displaced from illegal parking into council car parks.
Communications
53. Officers advise that the legislation allows for minor changes to the tariffs only via a Notice of Variation in a local newspaper and in the car parks. The legal advice is that a change in free parking time may be considered as more than a simple tariff change and is very popular with users as shown in the usage surveys. The proposed change would undoubtably be met with strong resistance and many objections and representations as well as adverse publicity, particularly if it was interpreted that the council had implemented a change via a Notice of Variation so as not to provide an opportunity for residents and car park users to understand why the changes are being implemented and comment.
54. A full and careful communications campaign would be an alternative way of helping to mitigate the risks of reputation damage and legal challenge.
55. Officers consider that the reputation risks will exist whether we do or do not carry out a full public consultation, it is officer opinion that a full public consultation would not be in the public interest and a carefully planned communications campaign is preferable.
56. Alternatively, the changes can be made to include a full consultation process. This can be done at the same time as the car park orders are amended to reflect the new Civil Parking Enforcement legislation. Cabinet would need to agree for a draft order to be made having considered any representations at the cabinet meeting in June. Changes can then be implemented by 1 August 2022.
57. If the changes are agreed that do not require a full consultation, they will be advertised in local newspapers and in all the car parks. Unless there are any delays to the implementation, officers can arrange the changes to the fees to be made from 1 April 2022.
Climate implications
59. One way of doing this is by encouraging the take up of electric vehicles (EVs). Officers are working with Oxfordshire County Council to install a number of EV charging points across South and Vale. Once confirmed, officers will report EV charger usage annually as part of the review of car park fees and charges report to consider any change to improve EV take up.
Other implications
60. If changes to the free parking arrangements are agreed, the impact can be monitored from car park usage figures compared to previous years.
61. The current signage which advertises ‘Town centre Council car parks 2 hours free’ on the edges of towns will require a minor amendment to show ‘1 hour free’
Conclusion
62. The car park account shows a deficit over the next five years and officers recommend changes to fees to reduce this deficit. Officers propose ways for this to be achieved and request the cabinet to support these changes.
Background Papers
· Car park usage surveys from September 2020 and 2021.
Appendix 1
Vale car park pricing policy
The Vale Council’s existing parking pricing policy was last reviewed in 2011 when policy B (1) was removed. This was to reflect the fact that the introduction of the free two hours meant that the income from the service would not meet the expenditure. The other policies are:
B (2) Differential pricing may apply between areas in the Vale, including between car parks in the same town
B (3) Pricing may be used to regulate and influence usage to achieve a balance between sustainability and environmental objectives, and town centre vitality and viability; hence, short- term and long-term public parking should be differentially priced and located to encourage edge of town parking for commuters, thus freeing town centre parking for shoppers and visitors
B (4) Parking will be provided free of charge for disabled badge holders
B (5) Parking fees and charges will be reviewed annually.