Councils reject cycle hire plan to keep car parking cash

Two London councils are defying Boris Johnson's plans for a bike hire scheme. Town halls say they could lose hundreds of thousands of pounds by scrapping profitable car parking spaces to make way for cycle stands.

They are set to refuse planning permission for some sites, with Camden denying permission for one park and Westminster likely to refuse planning permission for five out of 39 at a meeting tomorrow.

Londoners are expected to make 40,000 cycle journeys every day as a result of the scheme, which will see 400 "docking stations" in Zone 1.

But Westminster is dragging its heels amid claims it will lose £420,000 in car parking money, while Camden would lose £126,500.

Mr Johnson has refused to offer the councils compensation but Transport for London will pay for the installation of the bicycle stations.

Councils are already struggling with increased benefit payments and budget cuts in the recession. Westminster is planning to axe 270 staff posts to save £10 million with jobs going in planning, social care and accountancy.

The council lost £17 million after investing in the collapsed Icelandic banking system.

Paul Dimoldenberg, leader of the opposition Labour group at Westminster, said: "The council is already in a financial crisis and having to find an extra £400,000 will inevitably lead to a loss in services or cut in posts.

"There has been disquiet among residents because of the loss of pavement space. The problem is these things often get pushed through by Cabinet members without any proper discussion about what is best for the council or residents."

The bike stands are intended to be around 300 metres from each other. Camden and Westminster also want to refuse planning permission because
they say the docking stations will be too close to homes, block entrances and damage tree roots.

A spokesman for TfL said: "We are surprised to hear these claims as there are a number of other boroughs who are keen to get involved. By working
together we have sought to find the locations that will have the minimum impact on the space available to all road users."

Mr Johnson has pledged to spend £113 million this year on cycling facilities including 12 bike super-highways linking outer London to the centre.