Parking in Rochford and Rayleigh will cost 40 pence for two hours following proposals put forward by the Hockley Residents' Association.
At Rochford District Council's full meeting, councillor Ann Hutchings of the association, who represents Hockley East ward, put forward her group's suggestion during a debate over the council's budget plans.
At present people parking up to 30 minutes have to pay 20p, 30p for one hour and 50p for one to two hours.
Under her proposal, the first two parking charges will be abolished and flat charge of 40 pence would be made for parking for up to two hours.
She said: "I am convinced it will regenerate our town centres. I am not only saying we will generate an extra £68,000 net but also by changing the times of stay there will be no need to actually increase the parking fees.
"At present the car park users can pay 20p for half an hour. Just enough time to go to the bank, cash some money, return to the car and proceed out of our district shopping areas.
"For 40 pence motorists can park for up to two hours, allowing plenty of time to visit the bank and stay to see what is on offer in our town centres."
Vic Leach, (Lib Dem, Hawkwell East) said the council should not do anything which would harm the town.
He said: "Regardless of how this is couched, it is an increase in parking charges."
He then added: "Rayleigh is a vibrant, thriving town and we don't want to do anything to harm that."
But Richard Vingoe (Hockley Residents Association, Hockley East) said: "It really is necessary to face up to what we have to do."
The scheme was agreed by a small majority.
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