Proposals which would see drivers in Watford hit with a sharp hike in the price of parking permits has run into opposition at the town hall.

Backbench councillors at Watford Borough Council rejected a recommendation that Controlled Parking Zone fees should be raised by 50 per cent at a meeting yesterday.

The move comes just days before the borough’s ruling Liberal Democrat cabinet have the final say on the plans on Monday.

Council bosses have drawn up proposals that would see an annual permit shoot-up from £20 to £30.

The proposals were prompted as fewer fines and a lack of an increase in the price of permits in line with inflation has created fears that the reserve fund could run out by 2014.

However councillors are worried that trying to get the extra cash by raising the price of parking permits will put an extra struggle on some of the town’s poorer residents.

Chairman of last night’s meeting, Councillor Jagtar Singh Dhindsa, is from Vicarage, a ward with a particularly acute parking space shortage.

He said: “£10 may not sound a lot but for these people and the incomes they are on, that would be a lot of money. People are losing their jobs or not getting pay rises.”

The council has also faced increased charges from the enforcement contractor that looks after parking in the area.

The majority of councillors at a meeting of the council’s budget panel yesterday believed the extra costs should be taken from the existing reserves pot rather than raising prices.

Councillor George Derbyshire, who looks after the Park ward, highlighted the fact that there is only a need to raise enough money to fund the parking service and the intention is not to make a profit.

He said: “There is absolutely no need to put up the prices of the residents’ permits this year. It is not as though next year we are going to run out of funds.”

All eight members of the committee voted against the proposed plans, which will now go in front of the cabinet at a meeting on Monday.

The chairman also suggested that the contract with the enforcement contractor should be reviewed as early as possible.

Councillor Nigel Bell, from Holywell ward, was pleased with the decision to reject the scheme.

He said: “This would have had a devastating impact especially on the central and West Watford residents.”