PLANS to increase parking charges in Eastleigh to help the county council's finances could damage the town's economy, the borough council has warned.

Eastleigh Borough Council (EBC) said it does not support plans for new charges and changes to existing fees put forward by Hampshire County Council (HCC).

The plans have been tabled as HCC aims to save £132m by April 2025.

Although EBC accepts that fees and charges are at the county’s discretion, it fears higher fees would “hinder economic growth”.

In a draft response to the county council’s plans, due to be considered by councillors tonight (July 6), the authority says new fees would “increase the cost of living for residents”.

READ MORE: £80m cuts agreed to Hampshire council's funding pot

The report adds that following HCC’s termination of the on-street parking and traffic management agency services on April 1, the changes “may be confusing for residents and users of on-street parking, especially as arrangements have only recently been handed back to HCC”.

“Such measures should be carefully considered to ensure no unintended consequences and should also be reviewed on a site-by-site basis.”

Other money-saving proposals by the county council include introducing and increasing charges for services such as care, country parks and ceremonies, reducing and changing services and changing the structure of local government in the county.

HCC says it could raise capital by lobbying government for legislative changes, generating additional income through school support and rent, as well as increasing council tax.

According to the plans, the county council could also use some of its £24m in unused reserves to bridge the gap – a similar tactic used for Southampton City Council’s budget for 23/24.

But the borough council says introducing and increasing charges “should only be undertaken in a targeted way and should only affect those people who are directly benefitting from the service”.

It adds that this should apply for businesses as well as residents and charges should protect those “least able to pay”.

READ MORE: Hampshire County Council under fire for 'porkies' over school transport cuts

Concluding, the report states: “EBC recognises the challenge of identifying savings, in particular related to social care, and supports HCC in making the case to central government for an improved funding settlement.

“EBC is clear that local government as a whole needs to be funded properly by central government.

“Lobbying can be used to help persuade central government to alter the way in which local government is funded, the amount of money that is granted, and may allow HCC to make local changes that would help to balance the budget.

“Any such local changes should however be subject to more detailed consultation with local stakeholders including the district and borough councils.”

HCC is currently consulting on the changes and is due to meet in November to agree a financial strategy for the next two years.