A council could be sued for hundreds of thousands of pounds because it wants to reclaim town parking.

Private car parking contractor NCP is seeking compensation worth £600,000 after Worthing Borough Council ended its decade-long parking agreement with the firm.

Problems first arose in 2009 when the council raised concerns at the cost of parking in Worthing’s multi-storey car parks, claiming NCP’s prices were having a ‘detrimental effect’ on the town’s economy.

Later that year, NCP and town hall bosses agreed to re-introduce 30, 60 and 90 minute parking tariffs that would prove cheaper for motorists but result in a loss of earnings for the parking company.

As a result the council agreed to meet half the cost of NCP’s losses for a year only, totalling £152,000.

But the council claims the 12-month period was purely a ‘trial’ and stopped paying half of NCP’s losses in November 2010.

NCP dispute this and is claiming compensation for breach of contract.

The council said it ‘vigorously refutes’ any breach of contract and claimed NCP was ‘trying to take every penny it can’ from Worthing taxpayers.

Paul Yallop, leader of Worthing Borough Council, said he was extremely disappointed the council’s relationship with NCP had ended acrimoniously.

He added: “We are making every effort to protect taxpayer money and
are seeking to resolve the matter with NCP. The council is seeking advice and assistance from the LGA and local MPs to help us in this fight."

Last month the council announced plans to take over the running of all council-owned car parks in April 2014 in an attempt to cut parking prices and attract visitors.

Council officials said parking prices had more than doubled since NCP took on the contract in 2003 but annual parking revenue had only increased from £880,000 to £1 million.

A spokeswoman from NCP said: “We do not believe it is appropriate or usual for legal disputes to be litigated through the press. This matter is currently subject to legal proceedings and NCP is not therefore able to make a public response through the media. We have every confidence in leaving this matter with the courts to resolve.”