Motorists could face a fee of 25 a year to park in the street, writes Madeleine Pennell.

Oxford City Council is considering charging for residents' parking permits to raise much-needed cash.

Nearly 10,000 people have free permits for residents' parking zones in Osney, Jericho, Headington and east and south Oxford.

Green councillor Paul Ingram believes that charges of 20 or 25 a year could raise 200,000 for the council, which says it needs to make savings or cuts of 3.5m.

Liberal Democrats on the council will consider the idea later this week. But Labour opposition councillors say they will fight the plan. Critics argue that it is unfair to charge people when they are not guaranteed a parking space.

The council has already decided against putting up city centre parking charges and increasing the 20p concessionary bus fare for old people.

Cllr Ingram said that Oxford was of the few local authorities in the country not to charge for parking permits.

He said: "We are out on a limb and as far as the Greens are concerned, we are on the wrong side of the limb.

"If people are faced with a choice between concessionary bus fares and charging car owners to park on the road, I think they would choose the latter. Charging for permits would help us police the scheme better."

Anthony Cheke, of Hurst Street, east Oxford, who runs The Inner Bookshop in Magdalen Road, said he did not think the council could use money from parking permits to fund other services.

"It is not a sensible solution. Charging for parking won't deter people from using their cars.

"The obvious way to raise revenue is by putting up the council tax," he said.