A DORSET council has been found to unlawfully raise its car parking prices to make a surplus.

Auditors were called in to assess whether North Dorset District Council had increased its charges for 'inappropriate' reasons.

In setting car parking charges, councils are required to comply with the Road Traffic Regulation Act 1984 (RTRA). Grant Thornton has now released a Report in the Public Interest regarding the matter.

John Gregory, director at auditing company Grant Thornton UK LLP, said: "In investigating an objection to increased parking charges in the 2012/13 accounts we concluded that the RTRA, which gives councils powers to charge for off-street parking, does not allow them to seek to deliberately make a surplus from these charges to fund other services.

"In our view the council's decision to increase fees in 2012/13 to support other services was therefore unlawful.

"We acknowledge that councils need to look at all possible ways of balancing the books in this time of austerity, but any income generation must be undertaken within the confines of the law.

"North Dorset District Council has recognised its error in 2012/13 and will ensure that all future fees and charges are set in the context of the specific requirements of relevant legislation."