New parking charges 'certain to hit West End's £50bn economy'

Warning: A City forecaster warns the planned parking charges will hit the West End's economy
12 April 2012

A leading City forecaster today warned Westminster council chiefs of the "negative impact" of evening and weekend parking charges on the West End's £50billion economy.

The first serious independent assessment of the so-called "tax on nightlife", carried out by the CEBR consultancy, contradicts the Tory-led council's claims that the West End will shrug off the extra burden. Oliver Hogan, head of microeconomics at CEBR, said: "We certainly see a negative impact on trade."

It backs up warnings from casinos, bars, restaurants and theatres that they will suffer badly, at a time when the economy is already under strain because of the eurozone crisis and the squeeze on consumers.

The council wants to abolish free parking on single yellow lines and impose charges of up to £4.80 an hour in parking bays between 6.30pm and midnight Monday to Saturday, and between 1pm and 6pm on Sundays, from January. The CEBR found that thousands of small and medium-size businesses across Soho, Covent Garden and Mayfair are likely to be vulnerable to the knock-on effects.

There would also be a disproportionate impact on lower-paid night workers, "given their dependence on car travel at the proposed times for imposition of the charges".

The West End generates nearly a fifth of London's gross domestic product. Paul Dimoldenberg, leader of the Labour group on Westminster council said it was "self-evident" the West End economy would be hit. "An extra £10 or £20 to park your car at night will make a big difference to a lot of people."

The authority has been accused of not conducting a full economic impact assessment as part of its research into the case for the new restrictions. But operational director Barry Smith said it was very hard to isolate the economic cost of parking charges.

He said: "You might have a couple living outside the West End, one of them may lose their job, so they no longer come into the West End for a meal. That is not necessarily anything to do with parking."

He added: "When the council introduced charges on Saturday during the day there were similar concerns raised. That was something like 20 years ago and in that time the West End has gone from strength to strength."

David Coffer, the West End's leading expert on restaurant, hotel and bar property, said many firms would be able to appeal for a business rates discount.

He wrote to council leader Colin Barrow: "Several thousand businesses are likely to be affected by your extreme measures. I would anticipate that, once these appeals become live, Westminster will lose several million pounds of rating income...may I ask if you have considered whether you are shooting yourself in the foot?"

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