HUNDREDS of thousands of pounds might have to be paid back to York residents, if city MP Hugh Bayley successfully challenges the legality of a decision to increase ResPark charges.

Mr Bayley has asked the Local Government Ombudsman to look again at City of York Council's decision to double residents' parking charges in 2004 - and he wants the authority to refund the profit it made from increased charges.

But his actions have sparked a war of words with council leader Steve Galloway, who said the MP had shown an "abject lack of understanding of local government finance", and insisted the authority had acted within the law.

Mr Bayley has written a letter to ombudsman investigator Helen Williams, asking her to reopen a case originally submitted by a Bishophill resident last year.

Gary Freeman, who lives in Kyme Street, complained about the increase in charges. Mr Bayley claims the ombudsman rapped the council's knuckles for failing to give notice of their plans to increase the charges.

He said a draft report of the ombudsman's decision showed the council had planned to make a "surplus" out of the higher charges, something the MP says was not intended under the Road Traffic Regulation Act.

He wants the ombudsman to advise the council that it should not budget to make a surplus on residents' parking in the future, and that cash should be refunded to those who paid ResPark charges in 2004 to 2005.

In that period, the decision to raise ResPark charges saw income increase from £283,000 to £508,000 - potentially handing the council a £225,000 bill.

But the authority says parking in the city, particularly off-street, had been running at a loss for several years before the new charges were introduced, meaning there is actually little surplus.

Mr Bayley said: "The council has been rapped over the knuckles by the ombudsman for not consulting properly on their proposals to increase parking charges.

"I do not want to rub salt in the wounds, but I do want them to stop making a profit out of residents' parking to spend on services in other parts of the city.

"Residents' parking only affects central areas of York and it is unfair to expect city centre residents to subsidise the rest of the city."

Coun Galloway said: "Mr Bayley is resurrecting an issue from several years ago. The council demonstrated that it had acted and continues to act legally with the income from ResPark charges being used for transportation purposes.

"Mr Bayley fails to remind his constituents that from April 1, ResPark charges will rise only in line with inflation and that environmentally friendly, low-emission, vehicles will enjoy a 50 per cent discount.

"He would be well advised to check his facts in future before making any further misleading claims."

Helen Williams, ombudsman investigator, said: "It is too early to say (whether the case will be reopened). I have received a letter and the ombudsman will consider it."

Updated: 09:52 Friday, March 31, 2006