Laws to clamp down on rogue wheel clamping companies and tackle "a significant level of bad practice" have been promised for the next session of Parliament.
Home Office minister Lord West told a peers debate: "I think it is absolutely right we do something about this. Primary legislation will be made, and we intend to legislate as soon as possible."
He also said that it is "absolutely inappropriate" for cars to be towed away if they are just a minute or two over their time limit.
"We want to curb the unacceptable practices of some businesses. This covers such things as exorbitant release fees. We need to set some boundary, to step some principles and probably some top line on what can be charged," he said.
"Our preferred option is compulsory membership of a licensing scheme for vehicle-immobilising businesses. A third-party accredited body would be contracted by the Security Industry Authority to decide whether each company that applied for a licence met the scheme's requirements."
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