Businesses and shops in Oxford will benefit from a new permit scheme that will allow them to unload their goods more easily.

In the past, businesses in the city centre have not been allowed permits, and many have complained that they have suffered as a result.

Oxford City Council's highways and traffic committee heard that problems had been compounded by stricter parking controls, introduced as part of the Oxford Transport Strategy. Councillors agreed that businesses in the city centre should now be able to apply for a permit costing 100 a year, which would allow them to park in nearby residents' parking spaces between 8am and 6pm from Monday to Friday.

During the first year of the scheme's operation, businesses would only be allowed one permit.

Labour Cllr Alan Pope said he was concerned that the new scheme could "open the floodgates" for business parking in the city. But committee chairman Cllr Jean Fooks said granting the permit scheme was "listening to the needs of the people and making life easier for everyone".

Oxfordshire Chamber of Commerce chairman John Naish said: "This is a step in the right direction. There is such a lack of parking in the city centre that many businesses have ended up getting tickets.

"What we would now like to see is parking charges coming down to bring in more shoppers."