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Traders are gearing up for a battle with the Town Hall over an “absolutely bonkers” new parking policy which will dramatically extend restrictions in five of the borough’s town centres.

New plans published by Islington Council have revealed that controlled parking zones (CPZs) will be extended in the following areas:

• At Angel, parking will be restricted between 8.30am and 11pm, seven days a week.

• In the Emirates Stadium control area, which includes Highbury, Canonbury, Finsbury Park and large parts of Holloway, existing match-day controls will be removed and the parking restrictions extended to 9pm, seven days a week.

• Around the Whittington Hospital the CPZ will be in force 24 hours a day, seven days a week.

• Around Finsbury Square and Farringdon station it will apply for 24 hours between ­Monday and Saturday and from midnight to 6am on Sundays.

• At Archway, the zone will be extended to 8.30am to 6.30pm from Monday to Friday and to 8.30am to 1.30pm on Saturdays.

The council is introducing a £2.40 flat rate pay-and-display evening charge to cover the extended periods. Free e-vouchers for residents’ visitors will cover Monday to Saturday from 6.30pm to 9pm and 8.30am to 9pm on Sundays.

The Town Hall is extending the CPZ periods to protect parking for residents, but traders say the plans will be bad for business.

Dave Doolan, who has worked at a fruit-and-vegetable stand in Chapel Market for 50 years, said: “It’s going to kill the market. We are getting a petition together and will be getting MPs involved. I don’t know why they want to do this. They’re just getting greedy.”

David Twydell, chairman of Chapel Market Stallholders Association, added: “If people can’t do their weekly shop here, they will go elsewhere. The market has been in recession for a year, and all we need is a silly thing like this to push us over the edge.”

Danny Michelson, who runs La Fromagerie at Highbury Barn, said the new scheme was “absolutely bonkers”.

“It’s going to kill off our business in Highbury Barn, because there is only a limited number of pay-and-display bays,” he said. “And imagine what it is going to do to restaurants who rely on evening business. Their customers won’t come.”

Hak Huseyin, chairman of Islington Chamber of Commerce, added: “It all points to a money-making idea for the council to mitigate the cutbacks but it’s not fair to attack businesses.”

The council says the review of parking arrangements was launched because of new housing developments and a rise in the number of people visiting bars, restaurants and cinemas in the evening.

It also says the football calendar has “evolved”, with more matches on weekday evenings.

Transport chief Councillor Claudia Webbe said: “We need to protect parking for residents. In some places they are unable to park because existing controls are not working.

“Around the stadium demands have changed hugely since the last parking review in 2007. In Angel, there are new pressures on residents’ parking, especially around the night-time economy.

“We want to support businesses, and need to balance this against the parking needs of residents.”