"Overzealous" parking restrictions could have a detrimental impact on local businesses, Tina Stowell has warned.
The Communities and Local Government Minister holds fears that shoppers will simply drive to out-of-town stores or shop online if parking becomes too expensive or difficult.
She claims this would "undermine the vitality of town centres and lead to ghost town high streets" across the country.
There is currently widespread public concern that local authorities are using parking enforcement as a "cash cow" - lining their own pockets at the expense of motorists.
But speaking at question time in the Lords, Lady Stowell insisted the Government is doing all it can to address the situation.
"The Government intends to support local shops in town centres by reforming overzealous and unfair rules on parking enforcement," she declared.
New measures to tackle the growing problem have been discussed and ministers are currently in the process of deciding what action will be taken.
Total income and net profits for local authorities from parking is believed to have more than doubled under the last Labour government.
Copyright Press Association 2014