Councillors have called for a rethink on ending a first hour free car parking scheme.

A string of cost-saving measures by Labour-led Stockton Council, particularly changes to car parking, came in for criticism from Conservative members at a cabinet meeting. The council agreed to remove first hour free parking in Stockton and Yarm town centres, replacing it with a £1.50 charge for the first three hours, to raise an extra £800,000 a year from February 2025.

Leaders defending the decisions said they had to make difficult decisions to fill a financial gap and balance the books. They also warned “this is just the start”.

Councillor Lynn Hall, Conservative member for Hartburn, said: “No consultation has taken place to remove the first hour free parking in Stockton and Yarm. It will seriously affect small businesses that we are trying to attract to Stockton and we’re encouraging to flourish in Yarm.”

She said the free parking offer was brought in to safeguard businesses’ passing trade: “As a motorist and a shopper, it’s one of the joys of living in our borough to be able to pop in and support our local businesses. It indeed adds to the quality of residents’ daily living and it improves their wellbeing.”

She read out a letter from all three Yarm councillors, Conservative members Cllrs John Coulson, Dan Fagan and Andrew Sherris, saying: “These proposed changes have not been consulted on or discussed with either ward members, town council or the Yarm Business Forum.

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“Many businesses and in particular small businesses as found on the High Street are still in quite a fragile post-covid state and rely heavily on the free hour which allows both residents and visitors chance to grab a coffee, some lunch or, as an example, to nip into the post office etc. The Business Forum is seriously worried by the potential loss in footfall which may well be coupled with an upcoming increase in employers’ National Insurance.

“We certainly do not want to cripple those very enterprises that we are relying on for the viability and growth in Yarm and elsewhere. It would be far better to keep the free hour and increase charges for the remainder of the time.

“We understand the need to boost revenue but the real problem here has been the lack of enforcement resources in recent years meaning little or no enforcement coupled with frequent machines being out of order on a regular basis. We would ask that further investigation and consultation be carried out with the view to retaining the free first hour.”

Council leader and Labour group leader Cllr Bob Cook said: “Obviously nobody likes to put up charges but as you know we have a deficit, and we have to look at all ways to reduce that deficit over the next few years to ensure that we have a balanced budget. It’s difficult times and I think all councils are going through the same issue, looking at ways to increase revenue.”

Referring to inflation rises, he said: “It’s difficult decisions we’re going to have to make all the way through this. We going to have to look at ways to deliver services better but obviously cheaper in the long run, and this is just the start.”