Drivers 'held hostage' and face 'full-on local tax' as councils 'plunder' £2.3billion from parking costs

Felix Reeves

By Felix Reeves


Published: 18/09/2025

- 13:53

London councils made up 46 per cent of the total money raised in England from parking

Councils across England have raked in a record amount of money from parking, with profits nearing £1.2billion, according to fresh research.

New data from the Ministry of Housing, Communities and Local Government (MHCLG) shows that local authorities made £1.19billion in profit from off-street and on-street parking.


This is a significant rise compared to last year, when they collected £1.04billion and £896million taken just before the coronavirus pandemic lockdown.

In total, UK drivers spent £2.34billion last year, compared to £2.07billion the previous year and £1.79billion in 2019-2020.

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Reacting to the official statistics, Jack Cousens, head of roads policy at The AA, said local authorities were taking advantage of motorists.

He added: "Making £1.2billion in profit, from an income haul of £2.3billion, out of people's pockets and potential consumer spending is where we are now with so many English city and town councils and their unrestrained costs and fines."

Mr Cousens outlined that council parking charges were originally designed to cover the cost of "controlled and ordered provision".

This was done to ensure local residents and people travelling to different areas of the country would be able to buy goods and services in the area, stimulating economic growth.

Elderly couple paying for parking and a penalty charge notice

Councils across England raked in more than £1billion in profit from parking over the last year

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GETTY

Rising on-street charges could account for councils wanting to protect spaces from residents hogging parking areas, leaving them instead for visitors to the area.

Mr Cousens continued, saying: "Charges were supposed to cover the cost of providing and enforcing this parking, with some profit from fines and reward for successful parking and commercial policies. Anything above that is tax.

"For too many councils, particularly in cities, the cost of parking seems to have gone from a reasonable charge to a full-on local tax. Why? Because there is next to nothing holding them back."

The expert pointed to the Transport Committee's report to Parliament in 2009, which outlined the differences between taxes and charges.

A parking warden issuing fines

Councils across London raked in the most money from parking charges

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PA

The "Taxes and charges on road users" report stated that taxes were "compulsory, unrequited payments", whereas charges are paid in return for a service.

Mr Cousens claimed councils were creating new ways to "plunder more money from people with cars", especially those with lower incomes driving in for work.

He described motorists as being held "hostage" to permit costs, which forces homeowners to convert their front gardens into parking spaces.

The MHCLG data found that councils across London made up 46 per cent of the total money raised in England.

Parking tickets on car

The AA's head of roads policy said councils were slapping drivers with a 'tax' through parking costs

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PA

This included £1.06billion in income alone, while collecting £638million in profit, which represents a staggering 54 per cent of the surplus across the country.

English councils which generated the most profit from parking

  1. Westminster - £90.6million
  2. Kensington and Chelsea - £49.7million
  3. Lambeth - £39.2million
  4. Hammersmith and Fulham - £37.9million
  5. Islington - £35.4million
  6. Brighton and Hove - £33.2million
  7. Camden - £32.3million
  8. Wandsworth - £32.3million
  9. Haringey - £31.3million
  10. Newham - £25.9million