Shoppers face “frightening” price hikes of almost 40 per cent to park in Oxford city centre at peak times, it was revealed last night.

Charges in Oxford City Council’s car parks are due to increase by an average of 15 per cent this month — but the rises will not be evenly spread out.

Motorists parking in Gloucester Green will be forced to pay £1.80 more for a stay of between one and two hours on a Saturday, from £4.70 to £6.50 — up 38 per cent.

Those parking for up to one hour will find the price rises from £3 to £3.80, an increase of 27 per cent.

Business leaders hit out at the uneven increases and warned they would deter shoppers at a crucial time for the economy.

Graham Jones, spokesman for traders’ group Rescue Oxford, said: “That is quite frightening. We’ve got to draw people in.

“With this credit crunch we need to stimulate the economy. This is really sending out completely the wrong message. It is an unfortunate deterrent.”

John Glazzard, 67, visiting the city from Malvern, said: “I have just arrived and it is terrible — we are going to move on. I am not going to pay these prices at all.”

Councillors agreed to introduce the controversial changes back in November after the Greens voted with Labour to defeat a Liberal Democrat proposal for an eight per cent rise instead.

City Liberal Democrat group leader David Rundle said: “The key argument here is about helping businesses rather than kicking them in the teeth at a difficult time. Like many people the council is feeling the pinch but unlike many people it has a responsibility to try to assist people and businesses. For people thinking ‘Should we go out and shop?’ this is an extra disincentive.

“The council has failed to understand people need help rather than extra costs.

“The January sales are the most significant part of the year. It’s not just hitting shoppers and shopkeepers generally — it’s hitting them at the most sensitive time.”

City council leader Bob Price said the authority had been hit by the Icelandic banking crisis, the cost of the pensioners’ concessionary bus fares scheme and the credit crunch. He said increasing parking charges would raise about £500,000.

Mr Price said: “We need to fill a £5m budget deficit. Anyone who feels this is a disproportionate amount of increase has got an obligation of finding the savings another way.

“We are now making some very swingeing cuts in staffing at the council. We are trying to reduce the costs across the board.

“This is not a good time for anybody. It’s not just affecting individuals, it’s affecting councils in a very bad way.

“It is a big increase, but in relation to the cost of living generally, it doesn’t seem to me entirely unreasonable.”

The increases will be staggered in different areas of the city, with the first rises — in city centre and Summertown car parks — not being implemented until Thursday.

Those in Union Street and St Clement’s will rise from January 12, while the date for car parks in Headington to implement price increases has not yet been set.

esimmonds@oxfordmail.co.uk