Spiralling parking charges used to swell the town hall coffers were branded “unlawful” and condemned at a full meeting of the council last week.

The withdrawal of half-day visitor permits and 150 per cent increase in Controlled Parking Zone (CPZ) charges were declared to be an unjustified source of council income in a motion passed by Labour and Independent councillors, defeating the Conservative-run council.

Increases made in last year’s budget were also heavily criticised having been introduced through the backdoor, without passing through the council’s scrutiny process.

Labour councillor, Mark Allison, said: “This must be legally dubious. The law is clear - charges should never be used just to raise revenue and act as a secondary council tax.

“There is just no evidence to suggest the hike in charges is due to a shortage of parking spaces in the borough. The whole point of scrutiny is that it acts as check and balance, but where was it in this whole process?”

Merton Independents councillor, Peter Southgate, said: “Anyone, a friend or a tradesman, who pops in to see you for even a few minutes must display a visitor permit that will cost £2.50. I thought in Merton we were meant to be putting our residents first, not putting our revenues first.

“This has evoked a response of helpless fury among our residents.”

The council will now have to limit any future increase in resident and visitor parking fees and investigate the re-introduction of a half-day permit.

But Conservative Councillor William Brierly said the rises were needed to regulate the limited number of parking spaces in Merton and were far less than the 200 per cent increase in the price of visitor permits while Labour controlled the council between 2001 and 2006.

He said: “This is nothing short of hypocrisy. The total increase in charges over the last four years has been limited to 66 per cent.”