EXTRA VAT ON CAR PARK CHARGES SHOULD GIVE FREE BOXING DAY PARKING

An additional £20,500 of car parking income has been generated by the Council by not passing on the reduction of VAT from 17.5 per cent to 15 per cent from December 2008.

The full rate of VAT will be reinstated in January 2010; however the £20,500 has been a windfall gain as motorists carried on paying car parking charges at the 17.5% rate.

The question was raised at Full Council earlier in December by Leader of the Residents' Group, Cllr Clarence Barrett, who said: “The windfall should go back to those who have paid it and perhaps, like half the councils across London, free car parking on Boxing Day would be an ideal opportunity of progressing this while providing a welcome boost to our local economy”.

21.12.09