A DECISION to freeze car parking charges for the next 15 months in all West Devon Borough Council-owned car parks has been welcomed by residents and businesses.

Both Tavistock and Okehampton's leading business associations have hailed it as a 'really positive move' by the borough council.

But there are warnings that there could be a much larger increase in 2012 if Retail Price Index inflation and lost income levels were to be accounted for.

The parking freeze follows consultation with parish and town councils and business organisations in the borough.

Cllr Robert Sampson, chairman of the council's environment and community committee, said: 'We are keen to do anything we can to help our residents and traders in these difficult times by keeping outgoing costs as low as possible.'

In the meantime, West Devon's car parking strategy group, which involves business organisations and town and parish councils in the borough, is looking at alternative ways of encouraging further use of its car parks to increase income.

Members of the council's environment and community committee were told last week the fall in the use of car parks was a national trend and due to several factors, including the recession, an increase in fuel prices, free bus passes for pensioners and poor summer weather. This year is expected to see a drop in income of £20,000 due to the increase in VAT.

Chairman of Tavistock Chamber of Commerce Nigel Eadie said it was great news that parking charges would remain unchanged for the time being.

'In these harsh economic times people need to feel that the local authority is on its side and this is a really positive way of demonstrating that.

'It is very welcome news for residents, people who work in the town and it is also good for business as well.'

Mr Eadie, who sits on the car parking strategy group, said there were lots of other ideas to encourage people to use the car parks like making them free after 3pm — this was introduced in Dorchester two months ago and had received really good feedback.

Both towns are looking at boosting visitors. In Tavistock, the chamber is looking at developing a Business Improvement District, where money for enhancing the town centre is raised through a small increase on business rates. In Okehampton a town centre manager idea is being explored.

'We cannot prejudge what will happen in 15 months' time,' added Mr Eadie. 'Hopefully the economic climate will improve.

'Increasing charges damages the viability of town centres and we want to look at ways of encouraging people to use car parks so the income will go up that way.'

Chairman of Okehampton Chamber of Trade Ian Bailey said: 'This is a very positive approach by West Devon Borough Council to hold the prices for 15 months, and we welcome it.

'All councils have got difficult budgeting controls to put in place but businesses also have a very hard job trying to get people into shops.'