Why do we charge for parking?

Tuesday, 16 January 2018

10 reasons why we charge for parking

Whether you’re a private company or a local council, the costs of providing parking spaces for motorists are similar. The director of the British Parking Association, Nick Lester-Davis, argues it’s not unreasonable to ask motorists to pay these costs. After all, parking is for their benefit. But parking providers must make clear why they are charging and on what basis.

10 reasons to charge for parking

  • Direct operating costs such as cleaning, maintenance, signing, fencing, surfacing
  • Collection and enforcement charges
  • Administrative costs for residents’ permits, season tickets, costs of appeals
  • Information and awareness campaigns
  • Cost of servicing capital needed to provide the parking facilities
  • Communication and information costs to explain how parking schemes operate to motorists
  • Overheads (HR, communication, finance, management) can add about 30% to your business costs
  • The opportunity cost of the land used
  • Providing parking provides a service, for example the security convenience of long-term parking at an airport
  • Charges help to manage demand and reduce search traffic and congestion

Nick Lester-Davis has one question for people who argue that parking in public service areas (e.g. hospitals) should be free: who else should pay for it? Should a hospital trust pay for peoples’ parking or for their healthcare?

Read the full article here.

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