Forecasts that Lancashire’s county-wide parking scheme would run up a deficit have now been withdrawn, after it was discovered that the income from its ParkWise operation had not been taken into account.

Lancashire County Council had predicted that when the public-private partnership reached the end of its contract in September 2009, there would be a deficit of £1M.

But it has now been discovered that almost £1M extra has been generated by on-street parking enforcement in Preston and Lancaster. These city councils are the only ones among the 13-strong alliance where civil enforcement officers patrol the streets as well as off-street car parks.

This extra money had been diverted to highways improvements, but should have been added to the general ParkWise account, the county now admits.

County councillor, Matthew Tomlinson, cabinet member for sustainable development, confirmed the predicted deficit did not take account of additional money generated by on-street ‘pay-and-display’ schemes operating in Preston and Lancaster.

He said: ‘This income means that the costs of running the scheme will be covered, and is in line with the way other councils run their operations elsewhere in the country.’

A decision is expected in October on how the parking enforcement partnership will continue in the county.

In the past, there has been disquiet at Lancaster and Preston at what is seen as blatant subsidy of smaller authorities in the county, and it is expected this will be an issue when all the councils get together for a meeting in October.