The Department for Transport’s Operational Guidance to Local Authorities on Parking Policy and Enforcement states that the setting of charges for parking on-street or off-street in designated areas is a matter for the authority in accordance with the provisions of the Road Traffic Regulation Act (RTRA) 1984. The Secretary of State recommends that authorities set charges at levels which are consistent with the aims of the authority’s transport strategy, including its road safety and traffic management strategies.
The Operational Guidance makes clear that authorities should never use parking charges just to raise revenue or as a local tax. Where there is surplus income local authorities must ensure that any on-street revenue is used according to the provisions of section 55 of the RTRA.