After years of causing discontent among motorists, congestion charging has finally delivered an unexpected benefit: the demise of stratospheric city parking fees.

Budget airline-style pricing was introduced in Central London last week in an attempt to fill up the capital’s car parks, many of which have become increasingly deserted since the introduction of the controversial congestion charge.

While inner-city parking has traditionally been seen as prohibitively expensive, motorists will now be able to park for as little as 20p an hour under a Westminster Council trial of the easyJet system, where parking prices vary according to the number of empty spaces on arrival.

The scheme is being closely watched by other local authorities and business groups have indicated that they will lobby for it to be used elsewhere if it is a success.

Westminster Council has suffered a 13 per cent decline in car park occupancy since the congestion charge came in in 2003 and retailers have complained that businesses have suffered as customers have gone elsewhere.

Danny Chalkley, a councillor, told The Times that budget prices would entice motorists back. “Some of our car parks have suffered badly because of the general trend away from the car, and the imposition of the congestion charge,” he said. “We are keen to make these assets work the best we can and get a return for the taxpayer.”

Westminster’s car park in Bayswater, a stone’s throw away from the busy retail centre of Oxford Street and Regent Street, will operate the scheme for 12 weeks. If it is successful it will be extended to all the council’s off-street car parks. Alastair Gilchrist, the director of parking at Westminster, is a former easyJet executive and has provided advice on the scheme.

While motorists have paid a maximum of £33 a day for off-street inner-city parking, they could pay as little as £2.40 a day under the Westminster trial. Drivers who turn up when the 250-capacity car park is almost full will pay a maximum of £2 per hour. During busy periods the price could change every few minutes.

The trial was welcomed by Paul Watters, the head of public affairs at the AA: “Anything that can bring down the price of parking has to be a good thing. That’s quite a bargain. It might be a cheaper option than themhaving a resident’s parking permit.”

However, Sheila Rainger, deputy director of the RAC Foundation, said she had “grave doubts” about its success because drivers would not get pricing information until they arrived at the car park. She said that increasing car park occupancy was about “communicating to the motorist”.

Brian Gregory, a spokesman for the Association of British Drivers, said that the Westminster scheme was a “prime example of the law of unintended consequences”.

Hourly rates

Manchester £4.50
Birmingham £2.50
Liverpool £2
Blackpool £1
Preston £1
Lancaster 90p
Wigan 80p

Source: Times research

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