Officer delegated decision Date May 2007

All Wards

Summary of financial implications

The financial implications are set out in detail in Section 4 of this report.

In the absence of accurate data relating to the ownership of vehicles by residents currently purchasing parking permits, it is not possible to accurately predict the additional income generated by the proposal.

However, it is estimated that the introduction of the regime described would result in an estimated additional (net) income of £957,000 in a full year.

Accordingly it is estimated that introduction of the proposal would result in additional (net) income of £675,000 in 2007/08 and a further £281,000 in 2008/09.

Recommendations

I approve the above recommendations:

Signature _____________________________ Date ______________________

Post ___________________________________________________________

Any declarations of interest (or exemptions granted):

Consultation

Report history

Background documents

- Mayor for London's Transport Strategy 2003

- Lambeth Local (Transport) Implementation Plan 2006

- Government's Vehicle Excise Duty Regime

Appendices

Appendix A - Richmond upon Thames resident parking permit charging structure

Appendix B - Current (April 2007) Lambeth parking permit charges

Appendix C - Summary of residents' parking permit charges - London boroughs

Appendix D - Lambeth proposed residents' parking permit charges

Appendix E - Proposed charges for durations less than 2 months

Appendix F - Estimate of distribution of residents' permit holders vehicle ownership

A key element of the Government's strategy relates to vehicle emissions. The “Powering Future Vehicles Strategy” (2002) outlined the Government's aspiration that the UK should lead the global shift to a low carbon transport economy.

One target within this strategy is that, by 2012, 10% of all new car sales should be low carbon (with CO₂ emissions of 100g/km or less). This is consistent with the 1998 agreement between the European Commission and the European Automotive Manufacturers Association to reduce CO₂ emissions from new cars by 25% to an average of 140g/km by 2008.

There are numerous strands to the Government's strategy to reduce greenhouse gas emissions and hence combat climate change. In the context of this report, the two relevant strands are (i) policies around road traffic reduction and (ii) the taxation (vehicle Excise Duty) regime first introduced in 2001, which essentially encourages new car buyers to move to “greener” vehicles.

The proposals reflect the Mayor's concerns around the major challenge of climate change and “aim to discourage use of the most polluting cars and influence car purchasing behaviour.” It is anticipated that the Mayor would undertake consultation on the proposals during 2007 with the intention of introducing them (subject to the outcome of the consultation) in 2008.

The emission-based regime was introduced following public consultation undertaken in November/December 2006 and subsequent statutory consultation associated with the making of the necessary Traffic Orders.

The Richmond regime applies differential charges for residents' permits utilising the VED bands for vehicles registered on or after 1 March 2001 and engine size (cylinder capacity) for vehicles registered before that date.

Richmond has a regime whereby permit charges vary across the borough according to the nature of the controlled parking zone. The Richmond regime charging structure is shown in outline at Appendix A. It applies different charges across all the VED bands for post 2001 vehicles and utilises six bands for pre-2001 vehicles.

The maximum yearly permit charge is £300 (for a VED band G or engine size greater than 3000cc vehicle) in the most expensive zone. This represents a 200% increase on the pre-April 2007 charge for that type of vehicle. There is no charge for VED Band A vehicles - representing a 100% reduction on the pre-April 2007 charge for that type of vehicle.

Essentially within the Richmond model there are 23 different charges for a yearly resident's permit for a first vehicle ranging from £0 to £300 depending on the type of vehicle and the location of the zone.

Vehicle emissions in Lambeth are estimated to contribute 20,000 tonnes (90%) of the pollutants (NO_2, PM10, CO and VOC) that are measured as indicators of poor air quality. The whole borough has been designated as an Air Quality Action Zone and the indications are that the targets for certain pollutants will not be met. It is estimated that in excess of 200,000 tonnes of CO₂ were emitted by road traffic in Lambeth in 2003.

The Parking Enforcement Plan describes the council's approach to the setting of charges for parking (including charges for residents' permits). The Plan states that charges will be reviewed yearly with consideration of the following factors:

Parking charges have been reviewed on an annual basis. The charges for all permits, with the exception of residents' permits, have been increased in recent years. Similarly the charges for on street (pay and display and meter) and off street (public car parks) have been revised in the context of the factors described above.

The charges for residents' permits have not been changed since 1998. The current annual charge is £60 (£50 within the Congestion Charging Zone). Appendix B shows the current charges for residents' permits for varying durations, together with charges for other types of permit.

Improvements such as the introduction of on-line permit renewal, the integration of the Brixton Parking Shop into the new Joint Service Centre and an increase in payment channels for penalty charge notices are programmed for 2007/8.

Further improvements to parking arrangements are anticipated as the Council, along with all other local authorities, responds to the recommendations within the recent House of Commons Transport Select Committee into parking and revised (Department of Transport) guidance on parking operations.

In addition to changes in parking there have been significant improvements in the arrangements and infra-structure associated with transport modes (walking, cycling, public transport) that are recognised as being more sustainable than private car use since 1998. Facilities, physical infrastructure, training and information relating to cycling have improved. Similarly, the quality, accessibility and information of public transport in Lambeth (particularly in relation to buses) have improved. Furthermore the period since 1998 has seen the introduction of city car clubs which provide an opportunity for residents to have access to a car for essential car use which avoiding ownership.

Appendix C indicates that:

There will be six differently priced bands. The principle is that the cost of a permit for an “average” vehicle will increase to £115 per annum. Permits for vehicles with lower emissions will be discounted (by either 13% or 74%). Permits for vehicles with higher CO₂ emissions will have a supplement applied (+13%, + 39% or + 74%) according to the CO₂ emission rating.

Vehicles registered prior to March 2001 (for which there is no nationally recognised emission rating) will be charged according to engine size. It is not proposed to amend the arrangement whereby residents within the Congestion Charging Zone receive a £10 discount on the yearly charge at this time.

The proposed charging regime for 12-month resident permits is shown at Appendix D.

At the present time, residents can purchase permits for 1, 3, and 6 months or for a full year. This charge for 1,3 or 6 months is pro rata the full year charge with an additional administrative charge. It is proposed to continue with that principle. The proposed charges for 1, 3 or 6 month periods are shown in Appendix E.

Where a vehicle has been converted to operate on gas (LPG) in the majority of cases a “petrol” option will still be fitted. LPG still emits CO₂ although typically this is likely to be around 20% lower than if the vehicle used only petrol. To reflect this lower emission possibility and provide encouragement for residents seeking to convert to LPG, vehicles that have documentation showing that the engine has been converted will be classified in one band lower than the standard non-converted band.

The use of bio-diesel in vehicles has benefits with regard to combatting climate change, particularly where bio-diesel is derived in part from recycled cooking oil. However in some quarters there is a growing concern that a switch to the growing of crops specifically for processing as bio-diesel could actually contribute adversely to climate change.

Bio-diesel and “regular” diesel are interchangeable with minimal changes to the vehicle and no changes to vehicle documentation. At this time it would be difficult to introduce a regime that provided a lower cost permit to bio-diesel users in the confidence that they would not use “regular” diesel. Accordingly, it is not proposed to introduce a reduced charge for bio-diesel at this time.

Over time, other fuel sources (hydrogen) may be introduced for domestic vehicles. Occasionally these may fall outside the VED structure and require consideration.

In the unlikely event of such applications being received outside of the scope of the current regime, it is proposed that the appropriate charge would be made at the discretion of the Executive Director for Environment, Culture & Community Safety - based on the principles set out in this report.

3. Justification

The proposed regime and charging structure set out in Appendices D and E are considered to provide the appropriate level of encouragement to residents to consider the impact of the vehicle they drive upon CO₂ emissions and climate change and consequently, over time, on ownership. It is also considered to be a regime that will be broadly understood and relatively simple to administer whilst providing a framework that allows for adjustment in the future. Furthermore, it is a regime that is consistent with the principles for the review and setting of parking charges as set out in the LIP and Parking Enforcement Plan.

4. Financial implications

4.1 The council currently has no comprehensive and accurate information relating to type of vehicle (by CO₂ emission type) owned by its resident permit holders. That information has never been captured in a systematic way.

Similarly it is not possible to predict with any certainty the proportion of residents who will change their vehicle type or cease to apply for a parking permit as a result of the introduction of the emission based charging regime.

As a consequence it is not possible to predict with certainty the financial implications of the introduction of the proposed regime. Nevertheless, using the results of a sample survey and information on London-wide car ownership provided by the DVLA, an approximation of the Lambeth car population by emission band has been used to model the additional income that may be generated by the proposal.

The car population approximation used in the model is shown at Appendix F.

4.2 During 2005/06 income derived from sales of residents' parking permits was £1.13m.

Based on the breakdown of 2005/06 permit sales and the estimated profile of the Lambeth car population shown in Appendix F, it is estimated that the additional (first year) full year income associated with the introduction of an emission based residents' parking regime as shown in Appendices D and E would be £0.956m.

This estimate includes an assumption that a proportion of residents are likely to renew their permits early to avoid the increased charges in the first year and an assumption that a proportion of residents may choose not to renew their permits (as a result of being able to find alternative, off street parking provision or by ceasing to own a vehicle) or may choose to own a lower emission rated vehicle than provided for in Appendix F.

If an emission based regime were to be introduced on 1^st July 2007, an additional net income of £675,000 is estimated to be generated in 2007/08 with a further increase of £281,000 in 08/09.

The proposals outlined in this report are consistent with the policy objectives set out above.

The additional income estimated from the proposals are forecasts and may vary according to (i) the accuracy of the model used and (ii) whether or not the regime, together with other associated initiatives, contributes to the policy objectives behind the regime.

The costs and income associated with the proposal will be incorporated within the Parking Places Revenue Account (PPRA) for 2007/08 and beyond. Furthermore, Local Authorities are prohibited from spending any surpluses in the PPRA on anything other than transport related expenditure. As a result, any additional income arising from the introduction of the proposals must be invested in transport related improvements within Lambeth.

5. Legal Powers

Section 45 (i) of the Road Traffic Regulation Act 1984 (RTRA) provides the power to designate by order, on-street parking places. Sections 45 (2) (b) and 46 (2) (i) of the RTRA extend the means to charge for such parking places.

The proposed emission based residents parking permit regime would be introduced by making a Traffic Regulation Order (TRO) under the RTRA. The procedure for doing this is set out in the Local Authorities Traffic Orders (Procedure) (England and Wales) Regulations 1996.

This requires:

Section 122 (1) of the RTRA specifies that an Authority has a duty “…to exercise the functions conferred on them by this Act as (so far as practicable having regard to the matters specified in subsection (2) below to secure the expeditions, convenient and safe movement of vehicular and other traffic (including pedestrians) and the provision of suitable and adequate parking facilities on and off the highway”.

Some of the matters specified at Section 122 (2) include:

(d) any other matters appearing to the local authority to be relevant.

Sections 122 (2) (bb) and (d) therefore permit the Authority to consider Air Quality and Environmental matters when determining the parameters of a new parking scheme.

Sections 45 of the RTRA permits differential charging based on vehicular emissions and that regard may be had to environmental considerations in creating a parking regime under the RTRA.

Furthermore, local authorities have well-being powers under the Local Government Act 2000. These are wide-ranging powers which allow authorities to do anything which they consider is likely to achieve objectives listed and which include the promotion or improvement of the environmental well-being of their area.

The Scheme of Delegation to Officers, as approved by Council on 22^nd November 2006, empowers Executive Directors to submit proposals for fees and charges for departmental services.

The proposed (emission based resident parking permit) regime and charges that form the subject of this report were included within the appendices which were approved by Cabinet on the 8^th January and 8^th February 2007 and Council on 27^th February 2007 and have therefore been authorised. They were also the subject of scrutiny at the meeting of the Environment & Cultural Services Scrutiny Committee on 2^nd February 2007.

The powers to advertise and subsequently make the required Traffic Orders (subject to proper consideration of all objections received) required to introduce the charges set out in his report are expressly delegated to officers in Environment, Culture & Community Safety, as set out in the Scheme of Delegation.

6. Consultations

As described above, the legislation prescribes that form of statutory consultation for the making of the necessary Traffic Orders associated with the introduction of the proposed emission based residents parking permit regime. This requires the advertising of proposed Orders in the local press and by way of street notices.

The proposals have been in the public domain since publication of the report to Cabinet of 8^th January 2007. There have been numerous references to the proposals in the local and regional press since that date and information has been available through the normal channels.

The proposals have been featured in “Lambeth Life” which is distributed to all households in the Borough and were described within a letter sent from the Cabinet member for Environment to all premises within Controlled Parking Zones in the Borough.

Arrangements are being made to publish details of the proposals on the Council's web-site, within a “parking newsletter” that is distributed to all parking permit holders and can be accessed on the web-site and at all parking shops.

Arrangements are being made to advertise post and e-mail addresses where representations relating to the proposals may be sent within information being provided in association with the proposals.

The Head of Legal Services has advised that the consultation/engagement mechanisms described afford those affected by the proposals adequate opportunity to assess the impact of the proposals and the opportunity to make representations to them.

The Executive Director for Environment, Culture and Community Safety will be required to give consideration toall representations made ( to the wider consultation and to the statutory consultation associated with the necessary Traffic Orders) prior to deciding whether or not to introduce the charges and regime set out within this report.

7. Other implications

There are no significant implications other than those discussed within the body of the report.

8. Timetable

APPENDIX A

London Borough of Richmond upon Thames: Emission Based Charging Regime (April 2007)

APPENDIX B

Current Lambeth charges for parking permits

APPENDIX C

Residents' permit parking charges - London Boroughs *

* annual charge (April 2007) for first permit - excludes discounts for “green” vehicles

APPENDIX D

Proposal charges - annual residents' parking permit

As (i) and (ii) above less £10.00

Charged one band lower than the standard non-converted band.

APPENDIX E

Proposed residents' parking permit charges - for periods less than 1 year

The charge shall be pro rata the annual charge shown in Appendix D. rounded up to the nearest £ with the addition of an administrative fee as follows:

APPENDIX F

Estimate of vehicles (owned by Lambeth resident permit holders) within proposed charging bands

Introduction of a vehicle emission based charging regime for residents' parking permits 21

b

Introduction of a vehicle emission based charging regime for residents' parking permits