Private Parking Code of Practice

Baroness Swinburne Excerpts

Thursday 14th September 2023 Lords Chamber

[Baroness Swinburne (Con)]

I thank the noble Lord, Lord Lipsey, for bringing forward this important debate and other noble Lords for their considered and insightful contributions. It is fair to say that there are a lot of stories out there. I am sorry to hear about those experiences and, after preparing for this over the last few days, I am sure that everyone has a story. It seems to be a widespread issue to which everyone can relate. I am sorry that such stories are not rare. I assure all noble Lords that the Government remain committed to implementing the private parking code of practice as soon as we can.

Parking is a crucial part of our transport infrastructure; we all have an interest in how car parks are managed, especially given the important link between transport accessibility and the vitality of our high streets and town centres. There are good private parking operators delivering this crucial service. As was referred to, most times people park it is hassle free and does not result in any grievances. However, from public correspondence, the interventions we have just heard, news media reports and various consumer and motoring group campaigns, we know that poor practices are persistent within the private parking industry. Rest assured, the Government are committed to reintroducing the code of practice to ensure fairness for drivers, vehicle keepers and landowners.

Examples of poor practice range from confusing instructions on signage, which many noble Lords referred to, to the use of intimidating and pseudo-legal language in the enforcement of parking charges to the opaque appeal processes that were referred to by the noble Lord, Lord Lipsey—I suspect that the noble Baroness, Lady Randerson, and I would be able to help the noble Lord with the Welsh signage, but it is not fair that he did not understand the requirements of those parking restrictions.

There are reasons why the code was drafted and introduced. Data on parking charges are still not collated and centrally held, but I understand that the number of parking charges issued is getting larger and can have significant impacts on individuals and businesses. This lack of central data is being addressed. However, DVLA data on the number of requests made by private parking operators for registered vehicle keeper data provides a proxy for the volume of parking charges issued. As was mentioned by a few speakers, in 2019—which is the latest year for which I have data—private parking operators made over 8 million requests to the DVLA. That represents a significant increase from the 2012 figures, which were about 2 million. As was referred to by the noble Baroness, Lady Randerson, 2012 was when the Protection of Freedoms Act banned clamping and introduced keeper liability.

As others have mentioned, the significant increase in the number of parking charges issued is not in line with the increase in the number cars or indeed the demand for parking. We know that the increasing number of parking charges has negative impacts not only on motorists but on parking operators and landowners too. Non-compliance with parking restrictions can have adverse consequences for access to businesses, while motorists of course face financial penalties and, potentially, county court judgments.

That is why we developed the code following Royal Assent of the Parking (Code of Practice) Act 2019. The code of practice and the enforcement framework seek to meet three key objectives: to create consistency across the parking system and raise standards, to ensure fairness for drivers and registered vehicle keepers, and to increase transparency in the way the private parking industry operates. In doing so, the code seeks to tighten obligations on private parking managers to ensure—as just requested by the noble Lord, Lord Sahota—that signs at the entrance to and within the premises are designed and located so they are clearly visible and convey all the information drivers need to see.

The code seeks to standardise requirements for consideration and grace periods. It also tries to raise standards for complaints and appeal handling, including the introduction of a requirement to consider mitigating circumstances and an ability to cancel parking charges in certain prescribed circumstances. It also prohibits misleading or intimidating language in car park charges or debt recovery notices.

The two controversial measures are introducing new parking charge levels that are proportionate to the seriousness of the contravention, and introducing new debt recovery fee limits or potentially banning them altogether. As noble Lords know, the code was laid in Parliament in February 2022. However, shortly after its introduction, a number of private parking operators, and indeed debt recovery agencies, initiated a judicial review proceeding into the Government’s decision to introduce within the code new levels of private parking charges and to ban debt recovery fees. It was accepted that the original processes, unfortunately, were not adequate with respect to the impact assessment conducted prior to the introduction of the code. The Government therefore decided to concede those challenges and temporarily withdraw the code to ensure that its impacts were rigorously examined. Failing to do so would open us up to further challenges and could ultimately set us back further. I recognise that the setback is frustrating but, as we know, a further judicial review is possible and therefore we cannot cut corners. I hope noble Lords will recognise the need for this and we remain totally committed to delivering the code of practice.

While developing the new impact assessment, the Government have engaged with a range of relevant groups, including consumer representatives, parking trade associations and representatives from private parking operators and debt recovery agencies. To ensure the decisions are as well informed as they can be, we decided to publish the draft impact assessment to test the initial assumptions and run a formal call for evidence alongside it, to give all stakeholders an opportunity to provide relevant evidence.

My noble friend Lord Leigh referred to the parking charges element of this. We are of course considering the level of parking charges. My noble friend is right to highlight the importance of an effective deterrent. We are trying to find further evidence to demonstrate how effective or otherwise the deterrent would be with each option to inform the decisions on these matters.

This call for evidence, which closes on 8 October, is a key moment. I encourage those who have evidence that supports or contradicts our current understanding to come forward to help develop the options. I recognise that this creates another delay, but it is a necessary delay to demonstrate that an informed and evidenced decision is being taken on these elements of the code. The Government are taking a genuinely open approach to these decisions, and without knowing what the outcomes of our current call for evidence will be, unfortunately I cannot give the noble Baroness, Lady Taylor, a specific date for when the code will come.

We know that, following the call for evidence, we will publish a new impact assessment, which will need to be subject to further public consultation, on the options for parking charges and debt recovery fees.

In conclusion, I hope that the recent publication of the draft impact assessment, albeit slightly later than expected, and the call for evidence demonstrate that not only are the Government committed to publishing the code but keen to make sure that the measures set out in this new code work and stand up to legal challenge. The draft impact assessment estimates that, should we do nothing to improve the sector, parking charges will continue to rise. The estimates we have seen are that, by 2033, private parking operators will issue over 12 million charges a year. The Government are therefore working to try to stop this from happening.

I will look into the specific case of Northallerton car park on behalf of the noble Baroness and will respond in writing when I have spoken to the department about the specifics. I thank the noble Lord, Lord Lipsey, for bringing forward this debate and all noble Lords for their contributions. The Government look forward to continuing discussions on this important topic and delivering the expected results.