ANGRY traders claim plans to slash a free parking scheme could have a huge impact on the town.

Town Hall bosses had originally proposed axing the free parking scheme, which allows residents to use most council-owned car parks free of charge after 11am, in an effort to help fill a £900,000 expected hole in next year’s budget.

Tendring Council has managed to reduce the gap to £294,000, thanks to a slightly larger government grant than expected, and by using the authority’s austerity reserves over a two-year period.

The parking scheme will now continue in 2016/7, but will see a number of changes – if approved as part of the council’s budget in February.

The changes include residents having to opt in for a virtual electronic permit rather than a paper permit being issued to every household.

It will also exclude the months of July and August.

Households will be offered the chance to buy extra permits if they want.

Free parking after 3pm for all car park users, including those from outside the district, will be pushed back to 6pm.

Clacton Town Partnership chairman Lisa Alligan, who runs Charnallies restaurant in the town’s Pier Avenue, said: “Parking has always been a huge issue. People still say there aren’t enough spaces, especially in summer when tourists are here.

“It is a bad idea to have people opt in to the scheme as shoppers will always do what is easiest and will simply go to out-of-town sites.

“If local people aren’t encouraged to come here in the summer months, they will continue to shop elsewhere throughout the year.”

She warned: “This could potentially affect trade in the town centre – shopkeepers will not be happy about the changes.”

The changes are expected to cut the cost of the scheme from £200,000 to £100,000 a year.

Tendring Council has made £10million of cuts over the past four years and it is expected to need to slash a further £6million by 2019/20.

Council leader Neil Stock said: “The free parking scheme proved successful and popular and has helped to rejuvenate our town centres by encouraging more people to shop locally.

“Clacton town centre has one of the highest occupancy rates of any town of this size in the country.

“Residents really like the scheme and appreciate it.

“We have had to modify the scheme and trim in back a little bit, but we are determined to keep the fundamental principles alive.”

The authority’s cabinet is also set to propose a two per cent increase in its share of council tax bills in 2016/7, which means the average Band D home will pay the district council £150.58 next year for services.

Mr Stock added: “This is the first time as council leader that I will propose increasing council tax and it is not something I am happy doing.

“But we are now seeing the complete erosion of government funding for local councils.

“Council tax is going to have to go up.

The budget will go before the council’s cabinet on Friday before being voted on by all councillors on February 9.