Car park operator wants business rate relief

Chancellor should help parking sector, says CitiPark finance chief

The closure of almost all non-food retail and leisure venues, combined with a collapse in commuter road traffic, rail use and airline travel have caused revenues at paid car parks to dry up. However, unlike many business sectors, car parks are receiving little support from the government, despite many offering free parking to NHS staff and other key workers.

John Gautrey, chief operating officer of car park operator CitiPark, has gone on the record with his concern. “The parking industry is vital to our economy, enabling users to maintain social distance and help minimise the spread of COVID-19 which on public transport would otherwise be impossible,” he said.

“Though we support the government’s plight to help those most affected in this pandemic, we are rallying for the parking sector to be recognised equally to our fellow businesses in retail, hospitality and leisure so that we can continue to operate and serve our customers.”

The issue of rates relief is a particular bone of contention. Last month the chancellor Rishi Sunak announced extended business rates relief for the high street but this concession has not been extended to car parks.

“The chancellor repeatedly fails to acknowledge the plight of car park operators as part of his coronavirus rescue package,” said Gautrey. “Thus far we have seen unparalleled intervention with 100% relief for retail, leisure and hospitality premises, with support most recently extended to bingo halls, letting agents and day nurseries. However, many multi-storey car park operators, who rely on the custom of those benefiting from the exemption, believe that this support is not far reaching enough.

“Unfortunately, the government does not recognise parking companies such as CitiPark as a standalone business in its own right, with intrinsically linked revenue streams to leisure and retail. As a result, we may have to close our facilities, all of which are providing parking for NHS staff and other key workers at this extremely difficult time.”

Gautrey said that England has approximately 1,500, which have an estimated combined rateable value of £187m. “These sites generally occupy town and city centre locations, serving the needs of retail, leisure, and hospitality properties, all of which are receiving 100% relief. One must question the logic behind this,” said Gautrey. “These sectors have been provided with rates relief because they are the hardest hit by the effects of the virus. But surely the support network should be adequately compensated also? So what can car park operators do? Feel aggrieved in silence, potentially.”

Gautrey’s concerns are supported by Philip Clarkson, director of business rates at real estate consultants Lambert Smith Hampton. “Multi-storey car park operators are right to feel aggrieved by chancellor Rishi Sunak’s failure to acknowledge their plight in his coronavirus rescue package,” said Clarkson.

“We have seen many open their doors to provide free parking to NHS staff in recent weeks, which is highly commendable but simply not sustainable. These operators cannot continue to suffer in silence as they will soon be faced with the moral choice of whether to close their car parks and claim business rates relief, or stay open to help the community at the cost of their businesses’ future.”