Parking charge hikes are driving a fall in spending in York city centre businesses, the body representing them has claimed – but councillors said lowering them would be a step backwards.
York BID said its data showed spending by residents in city centre businesses was down by around £8 million so far this year compared to 2024, a 5.7 per cent fall.
BID Executive Director Andrew Lowson said businesses had lost regular customers who told them they had been pushed to shop elsewhere due to increases.
Cllr Kate Ravilious, York Council’s Labour transport spokesperson, said the fall had been offset by an increase in visitors’ spending and warned lowering charges would clog up roads with cars.
The BID’s comments come after the council said a review into hikes at Bishopthorpe Road is set to take place following a request from traders.
Increases brought in earlier this year saw council parking charges within the inner ring road rise to £4.85-an-hour for the first two hours from Sunday to Thursday.
A premium rate of £5.30-an-hour applies on Fridays, Saturdays and during events, with the rises brought in as part of the council’s budget for 2025-6.
Fees at Bishopthorpe Road were lowered to £3-an-hour in June following a backlash from traders there.
Cllr Ravilious has said a review is set to take place into charges there after traders lodged a request under the Traffic Management Act 2004’s Right to Challenge Parking Policies.
The council continues to monitor the impact of the increased parking rates with data reviews.
York BID’s figures for residents’ spending in the city centre showed data for June was down by 10.3 per cent compared to the same time the previous year.
The body said spending in York was worse than national trends.
The BID has called for parking charges to be reduced during off-peak times to draw people into the city centre during quieter periods.
It also called on the council to say when the consultation for the parking charge review will open.
BID Executive Director Mr Lowson said hospitality businesses were reporting the cost of parking was hitting businesses that depended on local trade particularly hard.
Mr Lowson said: “York might look thriving right now with the Christmas Market in full swing, but spending patterns across the year are far more nuanced.
“Hospitality venues are also reporting that two hours of parking can now cost more than a coffee and cake, and that kind of difference is enough to stop someone popping into town, those small lost transactions quickly add up.
“If local people stop using their own city centre, the mix of shops and services inevitably shifts towards something aimed solely at tourists, that’s not the future York wants.”
Phil Pinder, chair of the York High Street Forum, said charges brought in earlier this year should be reviewed urgently.
Mr Pinder said: “The worst fears of city traders have now been realised, that the hikes in car parking charges have driven locals away from the city centre.”
Ruth Phillips, of the Bishopthorpe Road Traders’ Association, said spending trends highlighted the disproportionate effect the rises had had on York residents.
Council Transport Executive Member Cllr Ravilious said the drop in residents’ spending was a reflection of national trends.
She added it was important to look at factors other than spending when looking at how an economy is performing.
The executive member said: “In the 12 months to September this year, the change in sales from the previous year was 0.8 per cent.
“It’s unhelpful to pick limited data to develop an argument that, were it implemented, would lead to greater traffic congestion across York.
“York is a city with good public transport options for getting in and out of the city centre so we don’t want to go backwards in clogging up the city centre with traffic.
“And we’re committing more than £6 million in investment to improve bus services and make them a more attractive and reliable option for residents and visitors.
“The parking review of pricing at Bishopthorpe Road, which is narrowly defined in response to the request of traders there, will get underway with a consultation very soon, and we encourage local businesses, residents and regular visitors to the area to take part and have their say.”
