Some traders claim their businesses may not survive the summer if they continue to lose customers who are reluctant to park in the city.

The City of York Council says it is faced with a budget deficit of �10m and decided to introduce the new charges rather than raise the council tax.

Shop owners will also lobby council meetings to get their views heard.

Some traders have reported that business is down by as much as 60% and some said they would have to close if the situation did not improve.

Simon Evans, owner of The Canopy furniture shop in Goodramgate, said poor turnover was forcing him closer to going out of business.

"In the six-and-a-half years we have been trading in York these are the worst figures we are showing for this part of the year," he said.

"We are running 20 to 25% behind the normal trading figures."

Council leader councillor Steve Galloway said the authority was talking to traders' organisations to see what could be done to offset the charges.