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Is parking the new local tax? Councils rake in record profits

By Mathilda Bartholomew | September 19, 2025

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Councils made £1.2bn profit from parking in 2024–25. See which cities are cashing in and why drivers call it an unfair tax.

Is parking the new local tax? Councils rake in record profits

Councils across England are pulling in massive profits from parking charges, and drivers are calling it a straight-up money grab.

Fresh stats from the Ministry of Housing, Communities & Local Government show councils made a huge £2.3 billion from parking between April 2024 and March 2025. Once costs were stripped out, that left a staggering £1.2 billion profit.

No surprise here, London leads the way. Boroughs in the capital alone raked in over half a billion pounds, mostly from on-street parking. Westminster topped the list with £90.6 million profit, while Kensington and Chelsea banked £49.7 million.

Elsewhere, Nottingham Council made £20 million, Manchester pulled in £19.5 million, and Bournemouth walked away with £17.1 million in parking profits.

And the numbers are only going up. Profits have jumped from just under £900 million pre-Covid to today’s record-breaking figures, rising by about £150 million in the last year alone.

The AA has slammed the surge as a “record parking plunder spree.” Its head of roads policy, Jack Cousens, said:  “For too many councils, particularly in cities, the cost of parking seems to have gone from a reasonable charge to a full-on local tax. Why? Because there is next to nothing holding them back.”

He accused councils of “creat[ing] new ways and reasons to plunder more money from people with cars, often on low incomes travelling in for work”. 

Meanwhile, the government is working on a code of practice for private parking companies, but it won’t touch council-run car parks, meaning they can still charge what they like.

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