Parking services in Preston raised £419,000 in profit in 2018-19, according to Ministry of Housing, Communities and Local Government data.
This was 42percent less than the previous year, when it made £724,000.
It means the city council has lost £305,000 which is largely down to shutting the city’s old market car park as part of plans to make way for a new leisure complex in the centre.
A Preston City Council (PCC) spokesman said: “The reduction in income for parking services is mainly due to the closure and demolition of the market car park, along with changes in overheads.”
All the profit made by the council last year came from off-street parking, such as local authority-run car parks.
The drop in profits made from parking in Preston bucks the trend across England, where profits hit a record high of £936m.
This was an increase of £63 million from the previous year.
The council with the highest profit last year was Westminster, which made £69 million from parking charges.
The leisure complex, coming to the site of Preston’s former indoor market, also includes restaurants facing Preston Market Hall, a new public realm and a multi-storey car park.
Demolition of Preston’s former indoor market car park got under way earlier this year in mid-July.
It makes way for a new multi-storey car park, cinema and leisure complex.