Chesterfield councillor fears car park fee increases will ‘undermine the town centre’

Labour-led Chesterfield Borough Council’s cabinet voted in favour of the changes to its town centre car parks during a meeting on January 16, with plans to introduce them from April 1 despite Opposition Liberal Democrat Leader Cllr Paul Holmes’ request for the council to consider freezing the prices to prevent a fall in visitors.

Deputy Leader and Cabinet Member for Finance and Asset Management, Cllr Amanda Serjeant, told the cabinet meeting the car park plans, which include the introduction of fees for the free Residents Parking Scheme, fitted with the council’s cost recovery model and the council is committed to supporting the town centre.

But the decision to increase town centre car park fees by around ten per cent follows the council’s previous approval of an increase in car parking fees and charges in September which Cllr Holmes says resulted in a 10-11per cent increase from November 1, 2023, which is now to be followed by a ten per cent increase from April 1.

Cllr Holmes said: “The car parks have always covered their costs and made considerable profit whether the high of £1,791,300 in 2009-10 or low of £1,046,333 in 2022-23.

“So ending the residents’ free parking concession and increasing charges by 21per cent in six months cannot be justified by need to cover costs.”

Cllr Holmes argued – that even though car park profits have fallen from 2014-15 when they stood at £1,511,193 right up to 2022-23 when they stood at £1,046,589 – there has still been a good profit every year so he criticised Cllr Serjeant’s argument that prices will have to go up to cover costs.

The Liberal Democrat opposition leader suggested car parking fees should be frozen to preserve town centre footfall and profits because he claims that statistics have revealed that the increase will result in an attritional loss of car park users.

Cllr Holmes said: “The car park study last year says that a 10per cent increase in parking fees generally leads to a one to four per cent attrition rate nationally i.e. income is one to four per cent less than would be expected because car park usage falls due to higher prices.”

He added that cabinet heard that council figures since November, 2023, following an increase in car park fees show a five to six per cent attrition rate in Chesterfield due to falling usage.

Cllr Holmes said: “My key point was to ask how much damage was being done to the viability of Chesterfield town centre by constant hikes in car parking charges which the council report now admits causes some fall in car park usage every time?

“When shop and market stall occupancy are at record lows what effect will a 20per cent increase in parking fees, plus ending residents’ free parking concession, plus cutting advertising, closing the visitors centre etcetera have?

“Absolutely none of this can possibly do anything but further undermine the town centre.”

Cllr Holmes also argued that the council should have seen if freezing or even cutting charges would have increased the town centre’s usage and whether it produced more income to benefit traders.

The car parking report was compiled after a study indicated a need to invest in the council’s car parks and to reuse surplus car parking land to support regeneration while usage, income, and climate change were considered with value for money and support for the town centre.

Findings in the study stated that income generated by the car parks is not sufficient to meet current budget targets and that there is spare capacity across council-owned car parks and the council also considered the impact of online shopping on reduced town centre footfall.

Chesterfield Borough Council’s cabinet voted in favour for fees and charges for car parks to be increased from April 1, 2024, for the 2024-25 financial year and the report indicates an increase of around 10per cent across the board.for permit holders, short stay and long stay parking as well as Saltergate car park customers.

The council’s Residents’ Parking Scheme – which provides free parking before 10am and free parking after 3.00pm, and free all day parking on Sundays and Bank Holidays for borough residents – faced an estimated loss of revenue equal to £287,547 per year, according to the study which proposed introducing the new, small charge.

It was subsequently agreed by the cabinet to introduce a one-off tariff of £1 before 10am, Monday to Saturday, and a one-off tariff of £2 after 3pm, Monday to Saturday, and a one-off tariff of £2 for all day on Sundays, and £2 for all day on Bank Holidays for the council’s Residents’ Parking Scheme to hopefully bring in an additional £126,305 of net income.

Lost ticket charges for Beetwell Street, Saltergate, Soresby Street and Rose Hill will remain at £20 and the railway station approach will remain at £3 for all day use.

The council has argued that it is facing significant financial challenges with austerity since 2010, uncertainties over future funding, the impact of the Covid-19 pandemic and inflation and it needs to be able to balance its budget after estimating a forecast budget shortfall for 2024-25 of £4m.

Councillor Kate Sarvent, cabinet member for town centres and visitor economy, said: “We remain fully committed to investing in Chesterfield town centre and in supporting others to do the same. We have built new office accommodation and as a result brought new businesses and footfall into the town centre, our multi-million-pound refurbishment of the Stephenson Memorial Hall is now well underway, and we will shortly start to make improvements to our market grounds and connecting public realm.

“These and other investments have been made possible through the council’s ability to attract external funding or to develop sound business cases that evidence financial returns.

“However, like councils across the country, we are facing a perfect storm of financial challenges – most outside of our control. Added to the background of historic Government underfunding of the sector, we are having to deal with the legacy effects of the Covid-19 pandemic, rising demand for council services such as homelessness and the impacts of an extended period of exceptionally high inflation on pay, goods, and services.”

Cllr Sarvent said the introduction of a fee for residents’ parking is not a decision taken lightly but the council has tried to balance the need to ensure it remains affordable for residents to continue to visit Chesterfield town centre while helping to offset the rising costs of providing car parking and town centre services.

She added the decision to increase overall car parking charges was one the council made with a ‘heavy heart’ while facing challenging times requiring difficult decisions.

Short stay car parking of up to one hour will increase from £1.90 to £2.10 with similar gradual increases for up to two and three hour stays, and up to four hour stays will increase from £5.30 to £5.80, and each hour after four hours will increase from £1.90 to £2.10.

Long stay car parking will also increase by the same amounts up to one, two, three and four hours but ‘four hours plus’ will increase from £5,80 to £6.40.

Saltergate car parking will also increase by the same amounts up to one, two, three and four hours and up to five hours will increase from £5.80 to £6.40 and over five hours or up to 24 hours will increase from £7.70 to £8.20.

Annual permits will increase from £720 to £800, monthly permits will increase from £72 to £80, scratchcard permits will increase from £4.20 to £4.60 and market trader permits will increase from £2.20 to £2.50.

The council stated that residents will receive their parking Residents Parking Scheme passes with their council tax bills in the usual way. They will be valid from April 1, 2024, to March 31, 2025, and they should be displayed with a valid ticket, or payment via the council’s pay by phone provider – RinGo.

The current residents’ parking pass – which allows for free parking before 10am and after 3pm, on Monday to Friday, and all day on Sundays and Bank Holidays, will remain in operation until 31 March 2024.

Applicable Residents Parking Scheme’ car parks include the following: Albion Road; Derbyshire Times (temporarily closed); Devonshire Street; Durrant Road; Hollis Lane (excluding on-street bays); Holywell Cross (the ‘Donut’); Queens Park (North and South); Spa Lane; Station Road; St Mary’s Gate; And Theatre Lane.