Small traders ask for VAT in car parking until Christmas

Small businesses hard-pressed for trade have urged West councils to reduce or scrap parking charges in the run-up to Christmas.

They say local authorities should apply the 2.5 per cent VAT cut to parking charges – at the very least.

But the Federation of Small Businesses (FSB) fear most local authorities have no intention of doing such a thing.

There were further concerns that even those who agree to reduce VAT on parking tickets from 17.5 to 15 per cent would move so slowly the new fees would not be implemented until after Christmas.

The FSB's western region organiser, Mary Mallia, said: "Local Government already raises £1.6 billion in parking charges as a source of revenue.

"They are bleeding our high streets dry by making it difficult for shoppers to park. Parking is of paramount importance to small businesses.

"The FSB is calling for local authorities to get into the festive spirit and make parking free in town centres over the Christmas period.

"Free parking will provide a much needed stimulus to our towns and villages across the country in these difficult times."

The FSB's Swindon branch chairman, Emma Faramarzi, said: "Small businesses are dependent on local authorities to provide sensible and well-balanced parking policies.

"These should allow people to shop in town centres without being hit by unfair parking charges.

"Access to quality parking provision is a significant factor in store performance.

"Local authorities need to realise that parking is an essential service not a short term revenue grab."

Yesterday most local authorities were still considering the practicalities of making such a move.

For many councils it would include recalibrating parking ticket machines.

Applying the 2.5 per cent reduction to parking charges would be especially important at a time when small businesses were facing large costs through the cut, according to Ms Faramarzi.

"The failure of some local authorities to pass on the VAT cut will blight many small businesses at one of the most important times of the year – Christmas," she said.

"We urge local authorities to encourage consumers to Keep Trade Local and make parking free over the festive period."

The VAT reduction covers, where applicable, invoices, service charges and electronic payments collected by councils.

The reduction – to be implemented for the rest of financial year until the end of next March – equates to drivers saving 2p for every £1 they spend on parking.

One West Wiltshire District Council, will give charities the 2.5 per cent it gains from the VAT reduction over the next four months.

Council leader, Graham Payne, said: "The average car parking ticket is about 80p so 2.5 per cent of that is just under 2p.

"What we are minded to do is to take the 2.5 per cent reduction, which should work out at about £4,000 for the last four months to the end of March, and donate it to a local charity."