The new scheme, offering free parking after 3pm, has been launched to help struggling retailers and Chester residents who feel it is too expensive to park in the city.

Free parking will begin on Monday, July 14, and will run for a three-month trial period at city council car parks on Princess Street and Gorse Stacks.

The scheme, christened Chester – It's Free After Three, has been developed by Chester City Management.

Late-night shopping until 8pm will also be introduced every Thursday during the three-month trial period.

The final decision was made at a Town Hall executive meeting last week.

Stephen Wundke, Chester City Management co-ordinator, said the idea was developed after research showed only 2 per cent of people in the city centre after 3pm were Chester residents shopping.

He said: "In addition to the Free After Three scheme, we're going to enhance street performances, shops are going to create special events and cafes are going to offer 'Kids Eat Free' deals.

"Restaurants are going to have early dining offers and we're going to make heroes of our people in Chester market.

"When you buy your fruit and veg or meat in the market, you're talking to the owner. They are excellent butchers in the market and we want to get back to dealing with the owner of the business.

"We want to get people back using the city and using our car parks for free.

"Hopefully it's a green project as well because people will be using their car less instead of driving out of Chester.

"We've got to get the pride back in people who use the city and that's the retailers and the residents."

Last month, the Leader reported on concerns within the retail community about the number of empty stores in The Mall, and although visitor numbers in the city remain high, local residents are looking elsewhere to do their shopping.

The new campaign aims to target this problem and hopes to increase revenue into local businesses, particularly as the credit crunch continues to bite.

Mr Wundke added: "If we do nothing it will get worse, but if we do something we have got a chance to change things.

"We need everyone working together and then we can fight a good battle."

Retailers are embracing the plans, although some think the hours of free parking should be increased.

Richard Roberts, of S J Bebbington butchers in Chester Market said: "I'm all for free parking, it's a good idea but it needs to be earlier in the day.

"Anything is better than nothing, but personally speaking, I think it should be after 1pm because at 3pm there will be a lot of housewives picking up their children from school."

Dave Bennett, parking services manager for Chester City Council, said the scheme may be extended if it is successful.

"That option will have to be looked at if it is successful, brings more people in and encourages retailers to promote themselves more aggressively.

"I'm hoping it's going to be successful because the city centre does need something to promote itself."

The three-month trial is being funded by the council's reserves and balances, which Mr Bennett said have been accumulated partly because of good financial management last year, which has resulted in an underspend.

It is not yet clear which city-centre shops will be offering late-night shopping every Thursday.

Details of participating shops and special offers at city-centre businesses will be released soon.