Kensington and Chelsea Council is offering free parking to shoppers every Saturday in April.
The London borough council will suspend charges on its 5,600 pay and display parking bays for up to two hours saving shoppers up to £6 each.
The scheme will cost the council around £300,000 in lost revenue.
Kensington and Chelsea Council leader Merrick Cockell said: “The economic downturn has presented many of our businesses with real challenges, and the scheme has thrown a lifeline to our beleaguered shop owners who have suffered a slump in trade.”
Retailers and landlords have called on local authorities to take similar steps to boost the high street across the country, with many blaming councils for not acting quickly enough to protect businesses.
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