Government cracks down on councils imposing £20,000 'parking tax' on householders renting out their driveways to motorists Enterprising homeowners have rented out their driveways to motorists Some town halls have seen their parking charges and fines dwindle Council chiefs have now started to threaten householders with fines They say they are in breach of planning regulations as it is a 'business' Eric Pickles says this is a "backdoor parking tax' and is changing the law to end such action by "parking bullies" A clampdown on councils seeking to impose £20,000 backdoor "parking taxes" on home-owners who rent-out their driveways to motorists is to be announced today by the Government. Some town halls have seen their cash from parking charges and fines dwindle as enterprising residents have rented out their driveways to commuters and other motorists - arguing that they are doing a public service by helping to free up already crowded streets. But in retaliation "bullying" council chiefs, whose extortionate parking charges have been undercut, have now started to threaten householders with draconian fines telling them that if they are running a commercial business from home they are in breach of planning regulations and will have to apply for a change of use for their property, say Ministers. Some town halls have seen their cash from parking charges and fines dwindle as enterprising residents have rented out their driveways to commuters and other motorists Local Government Secretary Eric Pickles says this is a "backdoor parking tax on people's driveways and parking spaces" and is changing the law to end such action by "parking bullies." Today Mr Pickles announced that the Government will be publishing new guidance on change of use making clear "that the public should be able to rent a single parking space without planning permission" provided there is no public nuisance to neighbours, or other substantive concerns. It follows the case of a Westminster woman who claimed she was threatened with a maximum £20,000 fine for breaking planning rules when she rented out her three parking spaces near Parliament. Mr Pickles announced that the Government will be publishing new guidance on the issue The council said it only acted after neighbours complained she was causing "a disturbance." A spokesman for the Department for Communities and Local Government explained: "Across the country, assisted by the internet "matching," households are renting out their spare or unused dedicated off-street parking space in and near town centres, train stations and sports grounds. This provides a small income for hard-working families, and helps provide more cheap parking spaces for people to park their car, taking pressure away from on-street parking.  But the spokesman added: "It is believed that many councils do not like this activity, as it deprives them of parking income. As a result they are demanding that households apply for planning permission for "change of use." Such a planning application fee costs £385, Councils are threatening fines of up to £20,000 if householders do not apply. Personal finance experts like Martin Lewis of moneysavingexpert.com have recommended this to households as a practical way of raising and saving money and websites such as parkatmyhouse.com have sprung up to match residents to would-be parkers. In London residents in the borugh of Merton have rented out their driveways during the tennis at Wimbledon while those in Brent have taken advantage of events at Wembley Stadium, such as the FA Cup final. But the practice means councils can lose out on pay-and-display revenue. Those in Brent have taken advantage of events at Wembley Stadium, such as the FA Cup final. But the practice means councils can lose out on pay-and-display revenue Mr Pickles said that under the proposed new rules a distinction is made between renting out a car parking space to park a single car - which should not normally require planning permission - and changing your garden into a car park, car show room or minicab rank " which would clearly require planning permission." Experts like Martin Lewis of moneysavingexpert.com recommend this as a practical way of saving money Mr Pickles said: "Councils should be welcoming common sense ways that help hard-working people park easier and cheaply and for families to make some spare cash. 'Councils shouldn't be interfering in an honest activity that causes no harm to others, unless there are serious concerns. Parking charges and fines are not a cash cow for town halls. This Government is standing up against the town hall parking bullies and over-zealous parking enforcement. The Department for Communities and Local Government is currently undertaking a review of Planning Practice Guidance, to consolidate the "confusing and inaccessible" 7,000 pages of guidance. This will include new practice guidance on when planning permission is, and is not, required, including for renting out driveways. Ministers also want to clear guidance to tackle people who may seek to flout the rules by for example by " turning their front garden into a car park." Moneysavingexpert.com has published a guide on how households can rent out their spare parking space, and how people can park for less. There are a number of websites which offer a "matching" service between people who want to rent out their drive and hire it out. They concede that it currently is a "grey area" in planning law, so highlighting the public need for clearer guidance.