Lincolnshire’s parking enforcement services lost more than £300,000 last year after the rollout of an expensive new contract.
Lincolnshire County Council says it may need to scale back activities if losses continue.
2024/25 saw the council’s highest-ever income from Penalty Charge Notices, with just over 47,000 tickets generating around £2 million of income.
However, that was less than the £2.3 million it cost to run the service – a big rise from £1.6 million the year before.
A new contract accounted for £1.8 million, and the rest was council costs.
The council has also blamed the fixed levels of PCNs and inflation for its difficulty in raising money.
Savings are set aside to fill deficits in parking enforcement, however this would run out in about two years if losses continued at the same rate.
The county council says it’s looking at how to reduce the costs.
The service’s annual report says: “Measures are actively taking place to reduce this deficit, involving change within our contractor’s organisation to ensure the service remains sustainable.
“However, with higher costs due to inflation continuing to remain as a pressure whilst the Penalty Charge notice remaining static, this may not always be achievable unless consideration is given to reduce county-wide enforcement coverage.
“It is anticipated that if the cost of a Penalty Charge Notice is not reviewed by central government in the next 12 months, Lincolnshire will need to adjust its approach to service delivery or seek additional funding to maintain the current service levels.”
The new parking enforcement contract began in November 2024, which aims to make patrols more efficient and use technology more.
During the previous financial year, the council issued slightly more PCNs – around 48,000 – and recorded a £164,000 surplus.
In 2022/23, it also raised £16,000 more than it spent.
PCNs can be either £70 or £50 depending on the offence, which are halved if they are paid promptly.
The issue will be discussed at the council’s Highways and Transport Committee next week (October 20)
