BCP Council sees drop off in parking revenue over first quarter
Bournemouth parking income falls £3.2 million short as council warns visitors are staying for less time
Parking income across Bournemouth, Christchurch and Poole is running £3.2 million below budget as the council warns that people are spending less time at destinations across the conurbation.
The shortfall is one of the biggest pressures facing BCP Council’s operations directorate, which is forecasting a £6.8 million overspend at the first quarter of the financial year.
A recently published budget monitoring report forecasts an overall council overspend of £27 million by the end of the financial year, with rising care costs accounting for much of the pressure.
Within the operations directorate, commercial operations are forecast to generate £4.4 million less income than expected. Parking services account for £3.2 million of that figure, while the seafront is facing a further £1.1 million shortfall.
The report says parking income is around 7% below budget. The position has been compounded by delayed savings initiatives, as well as higher business rates, maintenance and staffing costs.
The figures come as the council faces growing pressure to support Bournemouth’s town centre, with businesses arguing that parking costs can discourage visitors.
Despite periods of hot weather and strong visitor numbers along the coast, the council says high footfall does not necessarily translate into increased income.
Seafront businesses are also reporting reduced customer spending across catering, beach huts, arcades and other attractions.
Cllr Mike Cox, BCP Council cabinet member for finance, said people were continuing to visit the area but could be spending less and staying for shorter periods as household finances remained under pressure.
“Good weather can increase demand, it does not automatically translate into higher income,” he said.
“There are a range of wider factors affecting income, including cost-of-living pressures, which mean people may still visit our coastline but spend less, stay for shorter periods, or make different travel choices.”
The council will continue monitoring income and expenditure, including assessing the full impact of the summer season.
Cllr Cox said the financial picture was “more complex than simply looking at how busy the seafront has appeared during periods of hot weather”.
The council’s £27m projected overspend will be discussed by cabinet later today.