A bold free parking trial designed to revive struggling town centres in Cambridgeshire will be a central feature of Mayor Paul Bristow’s proposed budget for 2026–27, which is set to be considered by the Cambridgeshire and Peterborough Combined Authority Board this week.
The Mayor’s Budget, due to be debated on January 28, outlines plans for a two-year, temporary free parking initiative in Peterborough and Huntingdonshire, backed by £750,000 per year, alongside a commitment to freeze the mayoral precept for residents.
Mayor Bristow said the budget reflects key pledges made during the last election and is focused on supporting local economies, protecting taxpayers and strengthening town centres that are facing increasing pressure from online retail and out-of-town shopping.
“At last year’s election, I promised the residents of Cambridgeshire and Peterborough that I would not increase the mayoral precept,” he said. “Local taxpayers deserve election promises to be upheld and expect to get value for money. This budget keeps my word.”
The mayoral precept will remain at £36 for a Band D property.
Free parking scheme aims to drive footfall and support local shops
At the centre of the proposals is the free parking trial, which the Mayor has described as a “shot-in-the-arm for growth and jobs” for market towns and city centres that are struggling to compete.
The initiative is intended to boost footfall, support local shops and hospitality businesses, and help town centres compete more effectively with retail parks and online shopping.
“Our local centres need footfall to stay alive,” Mayor Bristow said in the budget report. “Some have free parking, like Ely, thanks to East Cambridgeshire District Council. However, most market towns have expensive charges.”
He added that in Peterborough and towns such as Huntingdon and St Neots, parking costs can discourage shoppers and visitors from using local high streets.
“For Peterborough and places like Huntingdon and St Neots, the cost of parking means customers lost to retail parks and online competition,” he said.
The Mayor has committed to working with local councils to design schemes that work for each area, with options including free parking at specific sites, on particular days, or across wider areas.
“I will offer funding to these councils and work with them to deliver free parking, whether that’s for particular sites, particular days or across the board,” he said.
Local councils and business groups back the approach
The free parking proposal is supported by evidence from local business organisations, including Discover Huntingdon Business Improvement District (BID), which has highlighted the importance of reducing barriers to accessing town centres.
The BID said that “targeted interventions that reduce barriers to access, such as affordable and convenient parking, can help encourage residents and visitors to use town centres later in the day and support local businesses during key trading hours.”
The analysis also notes that the approach aligns with Huntingdonshire District Council’s Economic Growth Strategy and Tourism Action Plan, which focus on creating sustainable town centres, strengthening business resilience and improving quality of life.
Similar arguments are made in the case of Peterborough city centre, which is identified as an opportunity zone within the Local Growth Plan.
“Too many local centres are on the brink of rapid decline, facing new competition and higher costs, not least through higher taxes on businesses,” the Mayor said.
“A charge for parking can often be the difference between using those shops, restaurants and facilities or heading out of town instead – or just going online.”
£1.5m funding pot set aside over two years
The proposed budget allocates £750,000 per year in both 2026–27 and 2027–28 to fund free parking schemes, reflecting early discussions with constituent councils.
The funding is intended to be flexible, allowing councils and the Combined Authority to shape schemes that suit local needs. However, the budget does not seek approval for specific parking arrangements at this stage.
“Discussions with constituent councils on the form of potential free parking offers are ongoing, but have informed the budget envelope,” the report states.
“I am not seeking approval of specific schemes at this stage, which will need further work and agreement.”
Once proposals are developed, detailed business cases will be required before funding is released, following the Combined Authority’s established Single Assurance Framework process.
The trial is deliberately temporary, allowing the impact of free parking on footfall, business activity and town centre vitality to be assessed before any longer-term decisions are made.
Budget delivers on election commitments
The Mayor’s Budget also reflects a wider reallocation of spending to align with priorities set out during the election campaign.
Alongside the precept freeze and free parking trial, funding will continue for the popular “Mayor’s Day Out” programme, which provides school trips to local heritage sites.
More than 6,000 pupils are expected to benefit from the scheme during February and March, following strong demand and positive feedback.
The Mayor’s Office will also continue to contribute to transport budgets, supporting additional bus routes and more frequent services across the region.
Public transport investment remains a significant part of mayoral spending, with the budget highlighting links between bus use, public health and economic growth.
Transport, health and environmental benefits highlighted
The budget report notes that increased bus usage is associated with improved physical activity and mental wellbeing, as well as better access to services and employment.
“Research has found public health benefits from increased bus usage, including more physical activity,” the report states.
“It has also been linked to mental wellbeing, as buses improve access to services, facilities and communities.”
Supporting bus routes is also seen as an environmental measure, offering an alternative to car journeys and contributing to wider sustainability goals.
Mayor’s office costs and overall spend
The Mayor’s allowance is set at £93,000, with office staffing and operational costs detailed in the budget papers.
The total projected cost of the Mayor’s Office for 2026–27 is £12.634 million.
The Combined Authority has set out a clear approval process for the budget, which will be passed unless at least two-thirds of Board members from constituent councils who are present and voting oppose it.
The process follows requirements set out in legislation and the Combined Authority’s constitution, with an emphasis on transparency and accountability.
Next steps for free parking trial
If approved, the free parking trial will move into a development phase, with the Combined Authority working closely with Peterborough City Council and Huntingdonshire District Council to design detailed schemes.
Peterborough City Council has already indicated it would be willing to work with the Mayor to develop a suitable approach.
The impact of the trial will be monitored throughout its two-year duration, with the findings expected to inform future decisions about town centre support and economic growth policies.
As Mayor Bristow concluded: “Free parking is a prospective shot-in-the-arm for growth and jobs.”
