CAR park income has plummeted after ticket prices were increased, new figures show — and taxpayers are paying the price.

Critics say their fears that higher charges would drive away motorists have come true as income fell from £738,670 last year to a forecast £700,444 this year.

With running costs added, that saw the Liberal Democrat-run Vale of White Horse District Council post a loss on its car parks of £125,322 last year — with a further forecast £91,460 loss this year.

Yet the council predicted in December 2009 that the price increases — strongly opposed by shoppers and businesses — would bring in an extra £70,000.

Prices introduced from April 1 included £1 to £1.20 for up to three hours and £3.50 to £4 for four to six hours.

The Vale council this week admitted: “The increase in fees has not resulted in the increase of income of £70,000 that was forecast.”

Permit costs are now set to increase, but further day ticket rises have been put on ice.

The council’s Abingdon car parks are the Abbey Close, Audlett Drive, Charter multi-storey, Civic, Cattle Market, Hales Meadow, Rye Farm and West St Helen Street car parks.

The council also runs car parks at Botley (Oxford), Faringdon and Wantage.

The Vale council’s Conservative opposition group leader, Matthew Barber, said: “This shows that charges are a disincentive to people shopping in the towns and shows the benefits of free parking.”

He said: “Inevitably, there would be a cost to the council, but there would also be economic benefits.”

Free parking provided by shops and businesses at Didcot and Witney was drawing people away, he said.

Peter Wiblin, joint president of Abingdon Chamber of Commerce, said: “These figures show that the current system is not working and that it needs an urgent review.

“Traders in the town have been pushing for free parking for two years to bring in more shoppers, but the council will not budge.”

Vale council leader Tony de Vere said: “I don't believe that the increase has driven shoppers away.

“Competition from out-of-town shopping centres is a major factor in people choosing not to come to market towns like Abingdon.”

He said: “We have considered making parking free for the first two hours, but we would lose hundreds of thousands of pounds and that would be a big loss in the current financial climate.

“But I’m not ruling out a major review and I would like to talk to traders to see if we can come up with some sort of loyalty scheme for shoppers.”

A report to Friday’s meeting of the council’s executive board says further ticket rises should be put back to December “when a more accurate long-term picture of car park income will be available”.

But permit costs will increase to meet the rise in VAT to 20 per cent. This will see a £720 permit increase to £735, for example.

Free parking was brought in after 4pm instead of 6.30pm in April in a bid to boost trade.