The Department for Transport (DfT) has confirmed it is considering scrapping minimum rates for parking fines to support local authorities lower charges for minor discrepancies.

Councils came under fire last year for reportedly collecting a combined profit of £594m from on and off street parking services over 2012/13.

A report from the Transport Select Committee subsequently pushed for numerous policies, including the introduction of a statutory ‘grace period’ allowing drivers to dodge fines for overstaying their parking ticket by five minutes.

In response to the report, the Government confirmed it was deliberating ‘the legislative options to abolish the minimum rates for parking penalty charges.’

If implemented, this could be ‘an initial step to giving local authorities the scope to allow lower charges for minor parking violations’ – the Government added.

The Government said it accepted calls from the Transport Committee for greater transparency surrounding town hall parking revenue, also confirming it was undertaking a consultation on the implementation of a parking ‘grace period’.

Commenting on the response, Transport Committee chair, Louise Ellman MP, said: ‘Parking enforcement is an important issue for motorists and for the management of urban roads – including the revitalisation of our town centres – so the Transport Committee is pleased to see the Government take such a positive attitude to our recommendations.’

Council leaders hit back at the Government, emphasising that town halls had already adopted ‘a common sense approach’.

Chair of the Local Government Association’s economy and transport board, Cllr Peter Box, said: ‘Councils are on the side of hard-pressed motorists by keeping a lid on parking charges.’

‘Many already publish annual parking reports to be open and transparent with residents and combat the deep-rooted misconception that they are being used to raise money. The reality is that income from charges and fines are spent on running parking services and any surplus goes on essential transport projects such as bringing our dilapidated road network up to scratch and providing subsidised bus travel for children or elderly residents.’