Parking Places (Variation of Charges) Bill

James Morris Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 3rd February 2017 Commons Chamber

[Mr Jones]

I thank my hon. Friend for his kind words. I reassure him that, following the implementation of the Bill, a council—whether in Torbay, Nuneaton or elsewhere—would certainly have to consult local people before taking the decision to increase charges.

I also reassure my hon. Friend that the provisions will not be implemented on the day the Bill receives Royal Assent. We want to ensure that there is some balance, and that the powers created are practical and proportionate. To ensure that the measures work in practice, we will consult local authorities, the Local Government Association, the British Parking Association and other interested organisations to ensure that their important views are taken into account before the regulations are made and laid. Furthermore, parliamentary colleagues will have an opportunity to consider any regulations in the normal procedures for secondary legislation. My Department will undertake a new burdens assessment to establish the administrative effect on local authorities of the duty to consult. The Bill will strengthen local democracy by giving people and businesses a voice in decisions on car parking charges that have an impact on the vitality of a town centre.

[James Morris (Halesowen and Rowley Regis) (Con)]

On that point, is this the most practical way for consulting local business, particularly when a town has a business improvement district? Halesowen, part of which I represent, is going through the process of becoming a business improvement district. Does the Minister agree that that would be an appropriate forum for local businesses to express their views about parking charges and the impact on town centres?

[Mr Jones]

As ever, my hon. Friend makes a pertinent point. I am glad to hear about the business improvement district in Halesowen. I am glad to say that businesses in my constituency of Nuneaton are trying to do the same thing. Business improvement districts are excellent vehicles for local businesses to be able to express their views on such issues. The local authority, taking into account the measures in the Bill, will be able to use those forums as important consultees before increasing car parking charges.

--- Later in debate ---

[James Morris]

I congratulate my hon. Friend the Member for Bosworth (David Tredinnick) on introducing the Bill. It has the virtue of being very simple, which meets one of his criterion, while also meeting the other criteria he laid out. I very much welcome the Bill and support it.

High streets across the UK are under pressure from a shift in spending from physical shops to online shops. There were 15 shop closures a day across the UK in the first half of 2016, and the number of new openings has fallen to the lowest level for five years. That is why local authorities need to be able to do all they can to support local high streets and shops, and the Bill, with its simple implementation of some new provisions, will give local councils such as mine the flexibility to do so. I know from my own constituency the problems local businesses are facing. Halesowen, Old Hill, Cradley Heath and Blackheath have important high streets within my constituency, with a wide variety of shops, places of worship, local services and entertainment venues popular among local people. However, when I visit any of my local high streets, parking is nearly always the No. 1 concern of local shoppers and business owners.

The Halesowen chamber of trade and local councillors in Halesowen have long campaigned for reduced charges, and, where appropriate, free parking on our local high streets. Conservative councillors have secured an important trial period of two hours of free parking to boost local footfall. If that is successful, I hope it will be extended to all council-owned car parks. The Bill will prove useful to Dudley and Sandwell councils in my constituency, because it will give them the flexibility that will allow them to implement the move more quickly and efficiently. Local residents will have to wait until April for it to come into effect, and local businesses are frustrated at the time that it is taking to get the initiative going.

The chamber of trade is taking steps to increase footfall around the town, considering ideas for more activities, organising celebration events, and consulting local business on what they need to help them to succeed. I congratulate the chamber on the hard work that it has done to establish the first business improvement district in the Dudley borough, and I hope that its well thought out business plan will be approved next week.

Traders’ groups throughout the country organise special promotional days to create more interest and increase the number of visitors, but many of them are frustrated by the unnecessary bureaucracy that they face when working with local councils to set promotional parking incentives. As we heard from my hon. Friend the Member for Derby North (Amanda Solloway), many Members will be supporting their local high streets on small business Saturday. We should be using campaigns like that to help our local shopkeepers.

Last week I visited a new business in Halesowen high street, the English Rose Tea Room, owned by the inspirational Gemma. She has fulfilled a lifelong dream of owning a business, and has not allowed the challenges of autism to hold her back. We should be doing everything we can to help to create a business and shopper-friendly environment so that businesses like Gemma’s grow and thrive, and the barriers to success are removed.

As my hon. Friend the Member for Bosworth mentioned, the Federation of Small Businesses has commented that high parking charges—along with other issues, such as changes in the way people shop—discourage shoppers from visiting traditional high streets. The impact on the high street is most seriously felt by small retailers in smaller town centres, and they agree that making it easier to reduce car parking charges will go some way towards alleviating the pressure, but unfortunately, as other Members have pointed out, many local authorities are planning to hike the charges even further. Last year the Local Government Information Unit think-tank produced a report which suggested that nine out of 10 councils were considering increasing charges for on and off-street parking, despite the enormous amounts of money that had already been raised nationally. That, in my opinion, is a short-sighted measure. It does not address the problems facing our high streets, and it is just a quick method of finding more ways to make money out of local motorists.

I think it important for councils that decide to increase parking charges to engage properly with local people and businesses. It is only right for there to be proper consultation on measures that could have an adverse impact on local residents. The Bill requires local authorities to consult interested parties, such as local traders’ groups, if they are seeking to increase charges, and I welcome that. It is essential for those who work, live and rely on our high streets to feel that they have the opportunity to make their case and that their views will be properly considered.

[Craig Whittaker]

There are local business initiatives in Brighouse and Hebden Bridge in my constituency, and businesses work tirelessly to organise events to boost the footfall in the town centre. Consultations should involve a high level of input from business organisations and traders, because they know exactly what goes on.

[James Morris]

As I said earlier, the Halesowen chamber of trade has done a huge amount of work to increase footfall in the town, and it should be at the front and centre of consultation on the proposed parking charges regime. As my hon. Friend says, those voices in our constituencies need to be heard.

The Bill will not necessarily prohibit any increase in charges. Occasionally it may be necessary to increase them if overhead costs are rising as well, especially in car parks that require access to machines and staff. The purpose of the Bill is to ensure that the impacts on towns are fully considered, not to prevent increases.

On-street parking is often subject to the same level of increases as off-street, although the costs of providing parking spaces are nowhere near the same. As other Members have pointed out, that can make local residents feel that they are a cash cow enabling local authorities to plug a financial hole. A balance needs to be struck. This is not a one-size-fits-all situation, but the Bill will make it quicker and easier for local authorities to do the right thing. It will also give local authorities the flexibility to incentivise the use of car parks which are currently underused. Spaces that they are paying to maintain are sitting idle, which does not benefit either local authorities or shopping centres. Empty car parks can become a magnet for antisocial behaviour and crime. It is important for local authorities to be able to respond to declining numbers quickly, and in the best interests of the local area.

[Jo Churchill]

My hon. Friend makes a salient point. Car parks that have fallen into disrepair, or are hardly used, can indeed become centres for antisocial behaviour, which means that there is a double disincentive for people to visit towns.

[James Morris]

I entirely agree. We must not allow that to happen. Making car parks full and making them places where people want to go is critical to town centre regeneration and the creation of a good retail environment.

I also welcome the Government’s move to look at further reforms to the local government transparency code to ensure that motorists can see at first hand a complete breakdown of the parking charges that their councils impose and how much they raise. There has long been a suspicion among drivers that parking charges and penalties are being used to increase the amount of money that local authorities can spend. Local authorities have no legal powers to set parking charges at a higher level than that needed to achieve the objective of relieving or preventing traffic congestion, and this Bill will make local authorities more mindful of this fact.

In the 2013-14 financial year, councils received just under £739 million from on-street parking and £599 million from off-street parking. The income received varies widely from council to council. The Broads, for example, did not receive any income for parking, whereas Cambridgeshire County Council received over £3 million from on-street parking. In total, councils in England made net profits of £660 million and £343 million from penalty charge notices. My own local authorities, which cover Halesowen and Rowley Regis, have recorded nearly £500,000 between them in profit from parking charges. Local people want, and deserve, to have faith that this money is being used properly.

Under the last Labour Government, revenue from parking increased from £608 million in 1997 to £1.3 billion by 2010. Such parking enforcement has undermined local high streets and I am grateful to the Government, who have since made many efforts to rein in these over-zealous and unfair rules.

In recent years, I have supported the Government’s action on tackling higher parking charges and aggressive parking enforcement which have caused considerable distress for thousands of motorists. I congratulate the Government on the measures they have introduced to stop parking charges being used as a stealth tax, including introducing new grace periods and stopping the industrial use of CCTV spy cars. Therefore, I believe it is in the best interests of my constituents, and those of local businesses and high streets, that this Bill, very ably introduced by my hon. Friend the Member for Bosworth, be enacted.

The link between parking charges and the health of British high streets cannot be underestimated. These changes will make it easier for local authorities to lower their charges to promote economic vitality in our town centres, and, importantly, ensure that if an increase is to be considered, the right steps are taken to make sure that it is properly considered. I believe that these are the right measures to help our local high streets, bring assurance to motorists and inject a much-needed incentive to revive town centres and high streets in my constituency and across the country.