Roadworks, hot weather and bank charges on card payments are among the factors being blamed for a projected £350,000 shortfall in Southampton City Council’s parking and bridge toll income.
Latest financial reports estimate the council will have the budget deficit for parking and bridge toll income by the end of the financial year.
Simon Letts, Labour councillor responsible for finance, said the projection was based only on the first three months of 2026/27 and traffic movements did vary a lot.
Cllr Letts said: “It’s been very hot recently and I suspect a lot of people have worked from home or not come into the city and we have had significant works on the Itchen Bridge which have meant it was closed or restricted in a variety of ways over the last period.”
Green Party councillor Matt Renyard asked for an explanation of how bank charges were contributing to the projected deficit.
Hannah Doney, director for finance, told the committee meeting on Thursday, August 20: “With each transaction people pay by card we pay a percentage in fees for the processing of the transaction.
“What we now have is a very high proportion of transactions in relation to parking and Itchen Bridge as cashless card transactions and that unfortunately means we do not receive all of the income from the parking fee.”
Ms Doney said the forecasting budget needed to be realigned to fully take the banking charge into account.
Committee members recommended the council explore its banking arrangements to see if a cheaper option is available.
Cllr Letts said: “The bank point is a very valid one.
“That’s a societal issue and all providers of services private and public have to pick up those costs.”
Conservative councillor Steven Galton said he had asked in the past about how the council budgeted for extra money it received when people overpaid in cash and no change was given.
Cllr Galton said: “You have said we have got charges on contactless that we didn’t have on cash and I would also argue when we were having people paying cash they were regularly overpaying because we didn’t give change.
“Has that had any impact on that budget figure as well?”
Cllr Letts replied: “It is an interesting one because the cabinet member has already had contact from residents that live in Netley and Bursledon saying ‘well, now we’re going to come into Southampton can we have the same cheap deal as your residents get on the Itchen Bridge’.”
The deputy council leader said this would need to be factored in with local government reorganisation, which is set to see the city council merge with Eastleigh as well as parts of the New Forest and Test Valley.
He said: “I would urge residents who live in the city get one of those cards because it is 40 pence as opposed to £1.10. It is a significant discount.”
The Southampton SmartCities card is free and allows residents to use it to pay the Itchen Bridge toll fees at discounted prices.
It can also be used by residents for their concessionary bus pass, library card and Get Active discount leisure subscription.
Cllr Letts added: “If you haven’t got one, get one.
“Save yourself a few quid.”
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