Agenda item

To consider a report from the Director of Resources on the Council’s current car park fees and charges and on a number of options for new charges in the 2025/26 Financial Year.

Proposed time 45 minutes

The Committee considered Option 1 outlined in the report on increasing fees across all the Council’s Car Parks.

Councillor Fletcher asked if it would make sense to have a sliding scale of charges where the car parks used by tourists have higher increases than those used primarily by local residents.

Councillor Heinrich commented that a flat rate increase penalised market towns more and the town centres did need car borne shoppers. A small increase of 10p could be made in the market towns which doesn’t generate the bulk of the income and increase by 30p or 40p in the resorts.

Councillor Cushing agreed with these suggestions as Fakenham shops needed all the encouragement they could get to support the trade, and it was largely the residents who used the car parks in Fakenham. An increase on 10p or no increase would be preferable.

Councillor Holliday asked what could be done to reduce the costs of running the car parks as they looked quite high and questioned how they compared with other areas. Reducing these would help with increasing the net income and improving the Council’s financial position.

Councillor Shires advised that premises was the highest cost and that includes Business Rates of £377,000 annually but was happy to have a look at the costs in detail.

Councillor Hankins supported the idea that the charges for tourists should be higher than for local residents as the Council should look at ways to increase the footfall in the market towns. In terms of the season tickets for the car parks asked if they were largely taken up by residents.

Councillor Shires advised that is predominately local residents but does include people who commute from outside the district to work or study in the district.

Councillor Heinrich suggested that a charge of 40p for the Coastal and Resorts Car parks should be explored. Councillor Cushing added that it was not clear what the financial income would be for a 30p increase on coastal and resort car parks and if sufficient income was being raised it could be possible not to raise the charges for the standard car parks. 

Councillor Shires advised that the Council was not covering the cost of inflation of running the car parks if there was no increase in the charge at the standard car park.

The Committee agreed to recommend that fees for the Council’s Standard Car Parks be increased by 10p per hour, for the Coastal and Resort Car Parks be increased by 30p per hour, and that the question of whether there could be no increase in fees at the standard car parks and a charge of 40p at the Coastal and Resort car parks be explored.

Councillor Housden raised the question of bedroom tax which was being introduced in other coastal areas and should be considered by the council. Councillor Shires advised that the Cabinet had discussed it, and it would need to be part of a Business Improvement Bid.

Councillor Adams advised that there wasn’t legislation to introduce a tourism levy at the moment. Bournemouth’s approach is subject to a legal challenge and there isn’t an obvious way forward on this at the moment.

The Committee considered that it did want to support Option 2 for the introduction of seasonal charges.

In respect of Option 3 that a flat rate evening charge be reintroduced across all car parks Councillor Holliday questioned the enforcement costs of such a change in Option 3. The Director of Resources advised that it would involve staffing in the evening and that would be an additional cost which would not be fully covered by the income from additional penalty charge notices. At the moment the Council received about £100k from these notices.

Councillor Shires advised that introducing such charges would affect the wellbeing of local residents as well as the nighttime economy across the district.

The Committee agreed that it would not want to see this charge reintroduced.

Councillor Fletcher in respect of Options 4 and 5 to increase season ticket prices asked if it was possible to differentiate those bought by residents and those bought from people coming into the district. Councillor Shires stated that she did not want to penalise people coming into the district to work especially as they may be on a lower income.

Councillor Heinrich commented that the Council had incredibly low season ticket prices and have been too low for too long. Given the Council’s financial situation there was no choice but to increase them. Even with the proposed increase it was still only 8p per hour which was exceptionally good value.

Councillor Holliday asked if there was value in having a stepped increase in the price as it hasn’t been increased in a long time and a 50% increase would be a big increase especially for pensioners.

Councillor Shires advised that she would be happy to look at this again along with an additional recommendation to review the season ticket prices annually.

Councillor Heinrich agreed that a 50% increase was high and suggested that the Council could have an increase that covered just the inflationary increase since 2016 as set out in paragraph 2.3.2 of the report and then review the prices annually to give a steady increase.

The Committee agreed with that suggestion.

The Committee agreed that in respect of Option 6 that Coach Parking Charges could be increased to £12, £24 and £96.

In respect of Option 7, that permit holder only parking is introduced at Hornbeam Road Car Park in North Walsham, Councillor Heinrich commented that one of the reasons for this car park was to provide additional parking for the train station but the level of usage on the Bittern Line is now higher than pre Covid with more leisure travel. Making the car park permit only would preclude leisure travellers and it could be better to charge £2 a day at the car park to undercut the Station Car Park charge.

Councillor Shires advised that the spend in the car park may not warrant the costs of installing charging points at the car park and undertaking enforcement. Councillor Heinrich asked what level of enforcement would be needed and with the expected increase in population for North Walsham did not want to discourage commuters.

The Committee agreed with Councillor Heinrich’s suggestion that the principle was right but that all the potential options for charging at Hornbeam Road Car Park in North Walsham should be explored.

The Committee agreed with the recommendation that car parking charges are reviewed every other year with the next review taking place so that any changes are implemented from 1 April 2027 apart from season tickets which should be reviewed annually.

Councillor Cushing asked that in future the net income forecasts be included within reports as it helped to consider the potential options. Councillor Shires advised that these would be in the report to Cabinet and could be forwarded onto members of the committee in case they wished to attend the Cabinet meeting.

Councillor Holliday asked if there was a net zero analysis of increasing the car park charges and was something the Council should consider every time it is asked to make a decision. Councillor Shires advised that there no implications on the Council’s Net Zero target as a direct consequence of increasing the car park charges. The larger implications of people travelling to the car parks was more difficult to work out and could involve the wider question of the carbon impact of tourism in the district. It was a large piece of work that could include green tourism and would speak to Councillor Varley as the relevant Portfolio Holder about it.

Recommended that Cabinet consider the following changes to fees and charges to be implemented from 1 April 2025

(A) (1) that fees for the Council’s Standard Car Parks be increased by 10p per hour, for the Coastal and Resort Car Parks be increased by 30p per hour, and

(2) the question of whether there could be no increase in fees at the standard car parks and a charge of 40p at the Coastal and Resort car parks be explored

(B) that seasonal charges are not introduced at this time

(C) a flat rate evening charge across all car parks is not re-introduced at this time

(D) season ticket prices are increased by the inflationary increase since 2016 only this year and increases to season ticket prices should be reviewed annually

(E) Coach Parking charges are increased to £12, £24 and £96

(F) that all the potential options for charging at Hornbeam Road Car Park in North Walsham be explored

(G) car parking charges are reviewed every other year with the next review taking place so that any changes are implemented from 1 April 2027 apart from season tickets which should be reviewed annually as mentioned under recommendation D above