WATCH: Labour MP Baggy Shanker vows to take action on private car parking companies
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Labour has launched a consultation on creating a new Code of Practice for private parking companies
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Drivers are set to benefit from a major overhaul of the UK private parking system, which aims to tackle the unfair penalties impacting millions.
It comes after the Government has launched an eight-week consultation on new regulations for private parking operators, marking a significant victory for motorists who have long campaigned for stronger protections against unfair charges.
The Ministry of Housing, Communities and Local Government published the consultation today, seeking views on a proposed Code of Practice that would introduce mandatory standards across England, Scotland and Wales.
The consultation, which will run until September 5, includes establishing an independent Scrutiny and Oversight Board to review industry practices based on enhanced data collection requirements.
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The Consultation offers the first step by the Government in regulating the private parking sector
PAThe proposals detail how private parking operators would face new compliance requirements under a UKAS-approved certification scheme, with the ultimate sanction of losing access to DVLA data if they fail to meet standards.
The consultation also proposes retaining the existing £100 parking charge cap with a 40 per cent discount for early payment within 14 days, while the Government builds a stronger evidence base through mandatory data collection.
Regarding debt recovery fees, currently capped at £70 by the industry, the Government is seeking evidence of whether this level can be justified.
Analysis found that debt recovery agencies reported profit margins of approximately 63 per cent, with only 13 to 14 per cent of cases paid at the debt recovery stage.
The proposals would require trade associations to collect and share data on parking charges issued, including monetary values, method of issuance, and location details. Operators would also need to provide information on sites managed, spaces controlled, and complaints received.
Additional protections include preventing charges where motorists take longer than five minutes to pay but complete payment before leaving Automatic Number Plate Recognition-controlled car parks.
Minister for Building Safety, Fire and Local Growth, Alex Norris said: "For the 35 million people in Britain who rely on cars as their main means of transport, the ability to park with peace of mind isn't just about convenience. It is vital for their quality of life.
"That’s why our Code will tackle misleading tactics and confusing processes, bringing vital oversight and transparency to raise standards across the board. This is another example of how we are fixing the things that really impact people’s day-to-day lives, as part of the Plan for Change.”
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Norris acknowledged that while the private parking industry plays an important role in supporting local economies, poor practice by some operators "tarnishes the reputation of those in the industry who strive to provide quality parking facilities and services."
He stated: "Reports of poor behaviour by parking operators that make it difficult for motorists to comply with the terms and conditions of parking and leave them open to parking charges and escalating costs."
The consultation follows the withdrawal of a previous Code of Practice in June 2022 after legal challenges from parking operators and debt recovery agencies, who argued that lower parking charge caps and a ban on debt recovery fees had not been properly consulted on.
Since then, the two accredited trade associations, the British Parking Association and International Parking Community, introduced a single Industry Code in October 2024, adopting many but not all provisions from the withdrawn Government code.
DVLA data showed that vehicle keeper requests by private parking operators increased from 1.9 million in 2012 to 12.8 million in 2024, representing a 673 per cent rise in parking tickets for motorists.
The Government stated it continues to receive reports of poor operator practices despite the Industry Code, including charges for faulty payment machines and apps.
Norris shared: "This Government wants to make swift progress to support and protect motorists, without penalising those private operators who run their car parks well.
"The parking industry’s two trade associations recently published a single industry Code of Practice. But more needs to be done to raise standards and to hold parking operators to account."