Despite the costs of motoring, which includes fuel, road tax and car insurance, going up for many motorists, plans to increase parking charges have been welcomed.

Local government minister John Healey suggested earlier this week that local councils were not making the most of their charging power and could help to reduce congestion by increasing parking rates.

However, despite being criticised by some, the Environmental Transport Association has welcomed the proposals.

Andrew Davis, director of the association, said: "Our own research revealed that in most cases parking is subsidised - the land used for the car parks would be worth more if it was used for something else such as office space."

Even though local businesses object to parking charges, an inexpensive car park that is "too cheap" is unlikely to bring in additional custom to shops, he added.

John Wright, national chairman of the Federation of Small Businesses, told the Daily Telegraph that charging excessively is "killing town centres".

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