Transport bosses have decided to charge to park on the street on Sundays in Birmingham city centre for the first time in 12 years.

Motorists are to pay a flat rate of £2 and will only be able to stay for a maximum of two hours.

The move, designed to raise extra money for the cash-strapped city council, brings to an end the era of free Sunday parking in Birmingham which began in 1998.

A plan to scrap free on-street parking after 6pm on weekdays and Saturdays has been scaled back after complaints from businesses who argued that the proposal would harm evening trade at bars and restaurants.

Instead, a new charging period between 6pm and 8pm will be introduced at a cost of £3.

Motorists will still be able to park free of charge between 8pm and 8am the following day.

The new system is backed by cabinet transportation member Coun Tim Huxtable (Con Bournville), who hopes to raise £300,000 a year from additional charges.

Council traffic manager Kevin Hicks claims that parking spots are being hogged on Sundays by people who work in the city centre, making it difficult for shoppers to find a space.

Mr Hicks said: “In recent years, retail provision has expanded with the development of the Bullring and the Mailbox and demand for on-street parking on Sundays has increased.

“Because there is not a charge, the parking bays tend to be occupied all day by shop workers.”

Birmingham Chamber of Commerce chief executive Jerry Blackett said the council had listened to the business community.

Mr Blackett added: “There are very difficult choices to be made. If parking charges aren’t increased, then the council has to find money from somewhere else.

“At least they have decided to keep free parking after 8pm, which is good news for the night time economy.

“And anything that makes it easier for shoppers to find a space on Sundays should be welcomed.”

The new charges will be introduced in September following a consultation period.