This Officer Key Decision meeting for Newham Council concerned the award of a contract for cashless parking services in the borough. With the previous contract with PayByPhone having ended, the council was scheduled to decide on the best way forward for providing this service. A report pack was prepared to allow Jamie Cooke, Corporate Director of Environment & Sustainable Transport, to make an informed decision.

Cashless Parking Contract

The main item scheduled for discussion was the award of a contract for cashless parking. The report pack outlined that Newham’s cashless parking system is heavily used, with over 900,000 sessions purchased annually, generating approximately £3.6 million in income. It notes that over 99% of visitor parking sessions are bought using PayByPhone.

The council had originally intended to join the Department for Transport’s (DfT) National Parking Platform (NPP) at the end of the PayByPhone contract. The National Parking Platform aimed to allow customers to purchase parking sessions via their preferred cashless parking provider in any local authority. However, the report pack states that the NPP is not yet sufficiently developed to meet Newham's needs, particularly in areas like emissions-based charging and event day management. Furthermore, the DfT has withdrawn funding for the scheme, casting uncertainty over its future development.

Given these challenges, the report pack recommended awarding a direct contract to PayByPhone for a term of up to three years (1+1+1 year contract), at an estimated cost of £900,000. The report pack argues that this would ensure continuity of service, protect the council's income, and allow Newham to join the NPP when it is ready.

Several alternative options were considered and rejected, according to the report pack:

• Doing nothing: This was rejected because it would result in the council not having a cashless parking provision, failing residents and users, and impeding income expectations for 2025-26.
• Commencing a full tender exercise: This was deemed to pose significant risks, including substantial costs (£150,000-£250,000), potential instability of income from cashless parking, and disruption to residents and visitors. The report pack also notes that appointing a new supplier would necessitate changing all council parking location codes across the borough, including updating physical signage and integrating new software.

The report pack notes that Newham’s transition to a predominantly cashless parking operation has been successful in reducing costs associated with machine maintenance and cash handling. However, it also acknowledges that this makes the council more vulnerable to disruptions if a new supplier is introduced, as customers do not have an easy cash alternative available.

The report pack states that retaining PayByPhone would also enable the council to deliver planned pricing changes in 2025/26, which are projected to generate an additional £1.1 million in income. These changes are linked to Newham’s approach towards emission-based charging and the introduction of a diesel surcharge, as part of the borough’s efforts to improve local air quality and reduce Newham’s contribution towards climate change.

The report pack also highlights the legal and equalities implications of the decision. It states that the council has the power to regulate traffic and charge for parking under the Road Traffic Regulations Act 1984 and the Local Government Contracts Act 1997. It also notes the council's public duty under the Equality Act 2010 to consider the impact of its decisions in terms of promoting equality and cohesion.

Councillor Sarah Ruiz was consulted on the decision.