Decision details

Cabinet considered report 10/11 of the head of economy, leisure, and property.  This provided information to help the Cabinet decide whether and how to put in place a Conservative pre-election pledge to introduce free short-stay car parking in the three market towns.  The Cabinet’s proposals were to:

·       introduce two hours free parking at all Vale car parks

·       increase parking charges over three hours

·       increase permit costs

·       require a ticket to be displayed at all times, including during the free parking period

·       extend the charging period to 6pm on Monday to Saturday

·       introduce a 'no return' for two hours for all car parks in a particular town

The report set out the officers’ assessment of the impact on income and expenditure.  The section 151 officer believed that the changes would cause a significant loss of income, estimated at £192,500 a year, with one-off costs of £10,000 for changes to signs, equipment, and advertising the proposals.  This would have a significant impact on the medium term financial plan.  The section 151 officer identified options to meet this cost:

·        using the new homes bonus

·        achieving further shared service efficiency savings, for example, co-locating the Vale’s and South Oxfordshire District Council’s offices in one building

·        other reactive savings through lean working efficiency measures or service cuts

·        raising income by creating a business improvement district

There were risks with each option—the section 151 officer did not believe that these options would be sufficient to meet the longer-term cost of the Cabinet’s proposals.  As no budget was available to fund the proposals in the current year, the Council would need to approve a supplementary revenue estimate to meet the cost. 

Cabinet noted that the proposals would require a change to the council’s policy, which stated that income from the service as a whole must cover the car parks’ operating, maintenance and management costs.  There would also need to be a new car park order.  Following consultation on the order, the proposals were likely to be introduced in December 2011 at the earliest. 

The report also identified other options such as introducing totally free parking, maintaining the existing service, or increasing charges. 

The Cabinet member responsible for this service reported that the car parking service was not just a source of revenue; it was a service.  Free parking worked in other parts of the country.  The proposals would help attract more visitors to the Vale and would improve the economies in the market towns. 

Three non-Cabinet councillors had requested to address the Cabinet on this matter:

• Councillor Jenny Hannaby questioned why free parking was necessary when it was already available in Wantage.  How would the Cabinet monitor the effectiveness of the proposed changes?  How would the Cabinet fund this in future years?  The new homes bonus should be used for housing or youth facilities.  Was the Cabinet going to consult the public on these changes? 
• Councillor Richard Webber believed that from reading the report, the proposed course of action was unwise.  He accepted that the Conservatives had promised this in their election pledge and now had to deliver it.  He asked two questions.  Would the Cabinet undertake research to check that the changes were working, and in the light of that research, would the Cabinet rescind its decision if the changes were not working?
• Councillor Angela Lawrence doubted whether two hours free parking would make much difference.  There had been no outcry when Waitrose reduced its free parking from two hours to one and a half hours.  She also expressed concern at the proposed use of the new homes bonus to fund these changes.  This should be used to assist people find homes.  How would the Cabinet fund these changes long-term? 

The chairman responded on behalf of the Cabinet.  He and his Cabinet members believed that introducing free short-stay car parking would benefit the market towns.  Not all towns had free parking.  He recalled that in the past free parking had not been the desire solely of the Conservative Party; other political parties had wanted this too.  This had occurred in Kidlington.  A number of studies had found that free parking increased footfall in town centres.  This had been the case in Chester, Bognor Regis, and Norfolk.  He was aware of the scale of the financial decision but believed that car parking was an important service.  The new homes bonus would fund this in the short-term.  These changes would bring community benefit—one of the aims of the bonus.  In addition, the council would not be able to put the entire bonus into reserves.  The Cabinet would look at more sustainable funding for the future.  However, he believed funding was covered for the period of this council. 

The Cabinet supported the chairman’s comments

RESOLVED: That Cabinet agrees to:

(a)       introduce two hours free parking in all car parks where there is currently a charge for parking;

(b)       increase parking charges for periods of three hours or more in accordance with the schedule set out in appendix 1 to report 10/11;  

(c)        increase permit costs in accordance with the schedule set out in appendix 2 to report 10/11;

(d)       require a ticket to be displayed at all times, including during the free parking period;

(e)       extend the charging period to 6pm Monday to Saturday;

(f)         introduce a 'no return' for two hours policy for all car parks in a particular town;

(g)       use new homes bonus to fund free parking in the short term, with longer term proposals being brought forward as part of cabinet's 2012/13 budget;

(h)        authorise the head of legal and democratic services to prepare and publish a draft traffic order, consult in accordance with the regulations, and report consultation responses to Cabinet; and

(i)         agree a change in the council's parking policy by removing the requirement that income should at least cover the operating, maintenance and management costs of car parks. 

RECOMMENDATION to Council:

(j)         recommend to Council that it approves a supplementary revenue estimate of £75,000 to fund these changes in the current financial year, with the money taken from the new homes bonus reserve.