AN UNDER performance in predicted Dorset car park income is being attributed to fewer summer visitors because of poor weather, according to Dorset Council.

The authority says that most of the expected £2.65 million end of financial year overspend in highways is due to a “significant gap” between the car park budget set at the start of the financial year in April and the actual levels of income.

Despite this by the end of September income was up overall by 14.5% and by October the council car parks had taken more money than they did in the whole of the last financial year.

A big hike in parking fees, imposed by the council early in 2023, led to more than 7,000 people in the Weymouth area petitioning the council to reduce parking fees – claiming it would impact on the local economy.

In a report to councillors into the reasons for a £13.6million projected end of year shortfall in the council’s Place Directorate, which includes highways, officers say a number of factors have knocked budget predictions sideways.

These include not being able to accurately forecast demand-led spending; market costs in excess of the 6% allowed for and a shortfall on income from council fees and charges, together with not meeting savings targets.

Included in the figures are £400,000 less than expected in rental income and a £143,000 shortfall from County Hall parking, with fewer people using the building and associated car parks.

Although less than predicted car park income from larger car parks is reported to be up by £275,000 and on-street parking income £100,000 better than the same period a year ago.

Councillors have been told that the problem is that although the income from car parks is increasing it is less than the amount the council anticipated – resulting in a predicted shortfall on budgeted figures by April 2024.

Said a report to an audit committee: “The Highways forecast has worsened by £1.87m and is now forecasting an overspend of £2.655m, which mostly relates to car parking income. Following the conclusion of the main visitor season, it is clear that current activity means there will be a significant gap between the budget set and the actual levels of income being received.”

The council’s budget process for the 2023-24 financial year had forecast a 25% increase in car parking fees each and every month, although in the usually busy July they rose by just 4.3% and in August by 6%.

The director in charge of these services, Matthew Piles, told councillors that the summer had been much worse for visitor numbers than expected, causing a big dip in anticipated car park income  – although by October total car parking income paid to the council had equalled what was earnt in the whole of the previous year.

The council say no profit is made from car parking and any excess, after running costs and investment in the service is deducted, is used to support the maintenance and improvement of the county’s roads.

More than a quarter of the £12m car parks revenue has been attributed in the budget to costs in running the service, including staffing costs, business rates, staff vehicles, office accommodation, stationary, electricity, maintenance, IT, signs and transaction and card fees.

When asked how much the council pays to the Just Park app’ company the authority said it was unable to give a figure because it was ‘commercially sensitive’.

Executive director Aidan Dunn, who oversees all of the council’s finances, said that the new ticket machines will help with budget setting for the coming year because they can provide more detailed information on car park use – day by day, if required.

The cost of these machines comes out of a separate capital budget and has also not been made public.

Said a council spokesman: “Parking income has increased by 14.5% by the end of September when compared to last year. We would have expected to receive more, but this was affected by the success of our permit offer, delays in tariff changes due to the installation of new machines and predominantly by the poor weather over the summer holidays.”