Residents in Falmouth and Penryn could pay £80 a year to park on the street if Cornwall Council carries out plans to overhaul its parking system.

In September the cabinet of the council will consider proposals for a £3.6 million scheme which aims to improve parking in several areas of Cornwall: Falmouth and Penryn, Newquay, Penzance and Newlyn, St Ives, Truro, Wadebridge and Bude.

The scheme includes £500,000 for works in the Falmouth and Penryn area alone, but to cover the costs of the works it has been suggested that the council will need to introduce or increase residential parking charges.

The proposal was examined by the council's transport policy advisory committee on Friday, and at that meeting a report was read which recommended that "residents’ parking permits are reviewed to ensure that the cost of the permit covers the cost to run and maintain the scheme." The estimated costs of an average first permit would be £80 a year.

The report also said: "Initial assessments of the potential revenue from the schemes indicate that the on-street charging proposals in Truro, Falmouth & Penryn and Penzance & Newlyn would pay back within two to three years."

The proposals follow a survey last year of nearly 7,000 people, with a smaller survey of 1,400 residents and businesses in Falmouth and Penryn.

That survey found that although 98 per cent of respondents lived in a household with a car, 32 per cent have no off-street parking.

On-street parking was found to be a major concern, with only a fifth having no problems finding parking, and 65 per cent of residents said there was not enough space for all residents’ and business vehicles in their street.

A residents' parking zone (RPZ) was the most popular suggested parking control among residents, with 35 per cent in support, but only 10 out of 56 businesses questioned said they would prefer an RPZ. Most business respondents, 22 out of 56, preferred time limited free parking.

But while an RPZ was the most popular choice among residents, it strongly polarised opinion, with 39 per cent in favour or strongly in favour while 44 per cent were not in favour or definitely not in favour.

In September, the cabinet of Cornwall Council will be asked to consider the draft Cornwall Traffic Management Parking Policy Statement, the implementation timetable of the parking designs for all seven towns, the residents' parking prices, and the proposal to borrow up to £3.6m for the work, to be recovered through revenue from the schemes.