Monday, 6 July 2009

The milch cows

The Sunday Telegraph revealed yesterday that parking fees and charges levied by local councils have more than doubled since 1997, from £5.5. billion in 1997-98 to £12.6 billion in 2007-08.

In many cases this was in an attempt to keep down council tax increases or keep within the government imposed caps. This was frequently because government block grants were mean. The government has even made a virtue of it, denying all responsibility but claiming it is good if it makes people walk.

To make a virtue out of a vice is cynical, because many people live some distance away from their work place, having chosen not to re-locate after changing jobs because of HIP charges and stamp duty, as well as the traditional financial and non-financial costs.

Not only do increases make another drain on poorer people in the nature of a regressive tax, it also introduces anti-competitive elements in retail markets. Some can compete with supermarkets and their free parking only by keeping parking charges low. Another consequence is that side streets within walkable distance of the town centre become free parking areas.

As government stealth taxes go, this is one of the worst.

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