SCOTLAND'S councils raked in over £40million in profit from their parking activities last year, with the big three cities generating over 90 per cent of the cash.

A new report from the RAC foundation shows the latest surplus generated by parking has rocketed by 12 per cent, over £5m, on the previous year, a clear sign councils are looking to generate new revenue streams amid the continuing financial squeeze.

The tally includes money generated by from all parking-related activities, including charges and penalty income from on- and off-street parking.

A fifth of parking income comes from the near half a million penalty charge notices issued.

The RAC said that while there were clearly costs associated with the operating parking regime it was crucial that councils kept charges down.

Another leading motoring organisation said that unless local authorities were able to show where the extra money was spent there would be issues around fairness and transparency.

Edinburgh has topped the poll, clawing in £19.4 million, up from the £17.4m surplus it generated in 2014-15.

It was followed by Glasgow at £12.6 million, up by £1.2m on the previous year, with Aberdeen in third with a surplus of £4.9m, up from £4.5m.

Between them the three local authorities generated 91 per cent of the total net surplus in Scotland.

The RAC Foundation data shows that between them, the 32 councils had a combined income of £79.3m.

However, the combined cost for councils of running their parking activities was just under half of this, leaving a difference between income and expenditure of a £40.3m surplus.

But notably less half of all the authorities showed any surplus, with two breaking even, 13 showing a deficit and two, East Lothian and North Lanarkshire, not providing any parking accounts.

Steve Gooding, director of the RAC Foundation, said: “Providing and managing the space for us to park our cars is not a cost-free activity for councils, but controlling those costs is clearly important.

“By keeping the bills down and seeing a rise in parking income there has been a significant increase in the annual surplus, or profit, councils are making from parking activities. The good news is that this money must be re-invested in transport services including, Scottish drivers will expect, maintaining the road network."

The analysis is based on data lifted from local authorities’ annual returns to the Scottish Government.

A recent report by Holyrood's Rural Economy and Connectivity Committee put the number of parking tickets issued in Scotland in 2015-16 at 466,000, creating an income of £14.74m, which the RAC said was broadly in line with the previous year when 457,000 were handed out.

Glasgow City Council said as the country's largest city and destination for hundreds of thousands of motorists from outside its boundaries, "it is not surprising that it is second on this list".

A spokesman added: “Parking tariffs can be used to make public transport more attractive and assist with behavioural change."

Cosla, which represents most Scots councils, it was a matter for authorities to determine charges based on locally based on local circumstances.

A spokesman added: "Scotland’s councils have to actively manage parking in a way that balances both keeping the traffic flow moving round an area as well as allowing access to businesses in a bid to support local shopping.

"If you park illegally you are committing an offence and penalties only apply to people who commit an offence."

Neil Greig, of IAM RoadSmart, said: “Once again the figures show an increase in ‘profit ‘ for councils running an activity that most drivers see as a basic service.

"With high streets struggling financially a return to providing car parking as an attraction for visitors rather than an opportunity to profit from them is long overdue.”

Transport Convener Councillor Lesley Hinds said: “Funds from parking income are reinvested in road maintenance and other transport infrastructure across Edinburgh. Charges for permits and on-street parking are important for reducing pressure on limited kerbside space and keeping our roads clear and accessible.

Transport Convener, Councillor Lesley Hinds, said: “As Scotland’s Capital, it’s essential that we keep the city moving, and parking restrictions ensure accessibility for all road users by maintaining road safety and encouraging free flow of vehicles. Parking charges also help businesses, residents and their visitors by encouraging a frequent turnaround of spaces, as well as deterring all-day parking.”