Madhouse economics

The Conservatives normally try to present themselves as the party of economic realism. It is strange, therefore, that Brighton's Conservative Council has decided to cut the price of residents' parking permits by 5%.

In most parts of Brighton, there is a waiting list of several months for a permit, which shows that demand exceeds supply. The application of basic principles of economics would suggest that this rationing by queuing could be prevented by putting up the price for the permits, which would also give the Council much-needed extra revenue.

In the centre of Brighton, charges for on-street parking are such that every parking bay reserved for residents is losing the Council several thousand pounds a year. Residents are in effect being given a subsidy to occupy a parking space.

This is the economics of the madhouse.