In a seminal High Court ruling delivered by Ms. Justice Beverley Lang, Town Halls cannot deliberately profit out of cash raised from motorists for parking outside their private residence.
However, Ms. Justice Lang did not rule illegal the half billion pound sterling surplus generated from parking as a whole. This means councils are still entitled to make a profit once fines, car parks and meter charges are put into the mix.
The catch is, the money raised must be used solely for transport whether it is fixing roads or paying for concessionary bus passes.
Barnet Council has been in the High Court before over parking, and appears to be confused on the law where parking is concerned.
Other councils have maintained that the profits raised are purely coincidental, and within the law. Councils in England and Wales cannot understand what possessed Barnet Council to ask Pricewaterhouse Coopers to include money raised from permits into the calculations.
The High Court ruling paves the way for legal challenges against other councils profiting from selling residents’ permits.
