A 746-space car park for BAE Systems has closed after talks with Westmorland & Furness Council failed.
The Waterfront car park on Barrow Island was built to accommodate the firm’s staff but a licence agreement between BAE Systems and the authority recently ended.
They confirmed they had been unable to reach a renewed agreement and the car park was now closed.
The council said it understood it may result in an increase of on-street parking in the area.
It added it had deployed officers to manage and monitor the situation.
A spokesman for BAE Systems said: “We can confirm the closure of the Waterfront/Resolution car park following the expiry of our agreement with the local authority.
“Despite extensive discussions, we have been unable to reach a renewed agreement.
“We continue to explore options to manage parking demand responsibly across the Barrow site.”
Councillor David Cassidy (Labour, Old Barrow and Hindpool) said: “Understandably, the news came as a bit of a shock.
“We have worked extremely hard with residents and the traffic management team to put a new traffic regulation order in place, which was due to go into effect next month.
“From preliminary enquiries that I have made, I understand that the council and BAE are in ongoing negotations, and I hope that this can be brought to a swift resolution.”
A spokesman for Westmorland and Furness Council said: “A licence agreement for land at Dova Way in Barrow recently came to an end without an agreement to renew.
“Consequently, we are required to take back possession of the land.
“We set out to do this in a way which minimises disruption. As drivers leave the car park, they are not permitted to re-enter.
“We acknowledge that this may result in increased instances of on street parking and our civil enforcement officers are being deployed to help manage and monitor the situation.
“We would remind all motorists there are alternative car parks within the Barrow town centre area.”
