An overhaul of on-street parking restrictions in Epworth is set to enable shoppers to park for longer in the town for free.

An action group set up last year to lobby Epworth Town Council and North Lincolnshire Council has seen moves made to allow the public to have their say on ways to ease parking problems.

Under proposals, that have now officially been put forward for public consultation, free parking on the High Street, Church Street and Market Place would be increased from the current one hour limit to two hours (Monday-Saturday 8am-6pm) – with three hours for blue badge holders.

There would be a no return within two hours restriction, but firms say the plans are a step towards making the stores more accessible for shoppers and will help free up spaces in the long-stay car park.

Andrea Evans, manager of the town's Lindsey Lodge Hospice shop, said: "I think the longer parking would be better. That is because people have been parking in the car park for just over one hour, so people like myself who need to park there long-stay to get to work in the morning cannot find a space. So it will be better if it's extended to two hours because people won't have to rush to get back to the car.

"The other problem with us is that for people who want to donate, they can't because they cannot easily park to drop donation bags off. What we have been telling them is to park directly outside the shop and put their hazard lights on their vehicle because they are unloading."

Under the proposed plans, 51 parking spaces will be created along Albion Hill, Church Street and Market Place.

Epworth businessman Mike Harm, who set up a Facebook page about the ongoing parking problems in Epworth, said: "I think this is a great step forward and it will help alleviate problems, but is in no way the answer to parking problems. I think we do need more than the suggested number of spaces, but it's great. I'd suggest the public get involved with the consultation because it's for the good of the community. Not enough people get involved with the council and then we blame the council when they get it wrong.

"It's down to the public to help guide the council – although whether they listen or not is a different matter."

Speaking at Epworth Town Council meeting, leader of North Lincolnshire Council and Epworth Town Councillor, Liz Redfern, said: "This plan is to get 51 parking spaces here to support the town. At the moment we have had 100 per cent support for the proposals."

Councillor Jonathan Whittaker made the proposition that the council welcomes the parking plans but expresses its concerns about spaces at the top of Albion Hill, review the location of the disabled space outside the bank and look at the possibility of extra parking spaces outside properties 20 and 22 Albion Hill. Councillors voted in favour of this action.

The plans are currently on display on the public notice board in the Market Place.