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Parking charge increases could damage local businesses

By: Laura Nineham
29 November 2010

The Forum of Private Business (FPB) has urged councils to think again about raising car parking prices, after they warned companies would lose business as a result.

As reported by, councils across the country have predicted that the price of parking will increase for anyone using council-owned car parks. Local authorities claim the increase is essential to cover funding shortfalls that the spending cuts have caused, but those in driving jobs are concerned that it will significantly damage the bottom line of their business.

January's increase in VAT, combined with rising fuel costs and growing insurance premiums mean that driving companies are already faced with the dilemma of whether to increase prices, or explore options to reduce costs. The news that councils across the country will increase parking fines will be particularly troublesome for those companies that deliver to areas with parking charges.

The concerns of how this would impact businesses have been underlined by the FPB, who said it will also affect small firms who will see their customers turn to retail parks and large businesses that provide free parking.

"If these councils are so desperate for money, perhaps they should concentrate on raising more revenue from the multi-national chain stores on their patches, rather than the small firms which are often struggling to survive," said Jane Bennett, head of campaigners at the FPB.

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