Councils’ profit from parking charges hit £1.4bn last year, research has revealed.
New AA analysis of Government data found that surplus from councils’ parking charges in 2025 had increased by over 20% compared to the year before.
With roughly £2.7bn of income having been made, councils took away £1.4bn in profit, versus a surplus of £1.18bn the previous year.
Income from fines was not accounted for in the statistics. However, the research found that on-street Penalty Charge Notices produced £773m for councils, while drivers were responsible for the majority of the total income.
The data confirmed that on-street parking produced £997m, with council-run car parks generating an additional £436m.
The biggest surplus in London was collected by Westminster (£109m), while Lambeth recorded a total of £57m, and Kensington and Chelsea brought in £55m.
Jack Cousens, the AA’s head of roads policy, said: ‘The AA doesn’t say that all councils are out to squeeze drivers dry for cash. Many provide an excellent service at a reasonable cost, often listening to local communities with free or low-cost parking charges for short-stay visits.
‘But too many local authorities treat parking as a cash cow to prop up their failing finances – and then moan when their expensive parking drives away visitors and the income falls.’
