18 September 2025
Official figures* released today (show that councils made £1.189 billion in profit from off-street and on-street parking – up from £1.043 billion last year and £0.896 billion just before covid.
Total income, revealed by the Ministry of Housing, Communities & Local Government, shows that drivers across the UK forked out £2.338 billion to English councils for parking. That compares with £2.075 billion last year and £1.758 billion in 2019-2020.
“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.”
London councils hauled in £1.065 billion in income, making up 46% of the total in England. They made £0.638 billion in profit, making up 54% of the surplus across England.
AA Head of Roads Policy Jack Cousens comments: “Making £1.2 billion in profit, from an income haul of £2.3 billion, 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.”
“Originally, council parking charges were supposed to cover the cost of controlled and ordered provision. The benefits were to encourage shoppers and other visitors into town and city centres and stimulate commercial activity. On-street charges might encourage turnover of spaces and permits were supposed to protect residents’ parking from hogging by outsiders.
“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. [The Transport Committee highlighted to Parliament in 2009’s ‘Taxes and charges on road users’ report that “Taxes are compulsory, unrequited payments, whereas charges are paid in return for a service”. Para 23, House of Commons - Taxes and charges on road users - Transport Committee].
“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. They create new ways and reasons to plunder more money from people with cars, often on low incomes travelling in for work. Residents feel hostage to permit costs so high that households often rip up their front gardens and turn them into parking.”