Traders in Chippenham are furious that 40 parking spaces are to be lost at the town's bus station site.
Work on revamping the much-criticised bus depot in Timber Street is due to start in January but shopkeepers fear the loss of parking spaces will make it more difficult for drivers to visit the town.
There is also upset at plans to board up the waiting room while work is carried out.
David Redgewell, speaking for public transport watchdog Transport 2000, said losing the waiting room would send out all the wrong signals and could attract all kinds of antisocial behaviour.
North Wiltshire District Council plans to remove all 40 parking spaces at the bus station to create a new layout of bus bays, with new shelters along the wall, and a sheltered waiting area with glazed walls.
"Boarding up the waiting room would be detrimental to passengers," Mr Redgewell said. "It should remain open because if they board it up it will attract young people at night, people will be trying to break in, and it will give an impression of dereliction."
Mr Redgewell wants to see the waiting room enhanced, with an information point and a refreshment service.
He said the First Group has opened cafs at Wells, Bristol and Bath and should be prevailed upon to open a not-for-profit venture at Chippenham as well.
"Of course I would like to see the bus station move to Bath Road, and more buses running from the railway station," he said.
"The future of the local economy depends on improving public transport. Investing in public transport is very important, if we want companies to inwardly invest and create new jobs."
He was concerned the new shelters against the wall will not be effective at night or in winter.
"Closing up the waiting room would be a disaster it would send out all the wrong signals," he said.
A spokesman from North Wiltshire District Council said work on the station revamp is due to start in late January and last about four weeks.
"It is planned to replace the waiting room at some point," he said.
The council which owns the bus station says losing the car park is the only way the bus station can be improved.
Shoppers can currently park in the central car park for two hours. Previous proposals to cut spaces there have sparked a furore.
Pam Burfoot, who owns Pembroke Photography in Upper Market Place, attacked the decision.
She said: "It is totally ridiculous. Anyone who ever comes into Chippenham will know how well used that car park is.
"On a Saturday they are queuing to get in there. To say there are sufficient parking spaces elsewhere in the town is complete rubbish."
She said many shoppers used Timber Street car park because getting in and out of Borough Parade was so difficult.
She said: "A lot of people won't use Borough Parade or Emery Gate, because it can take so long to get in and out.
"Timber Street is very popular, particularly with people shopping this end of town. Losing it will have a major effect on trade up here."
The improvements follow complaints that the buses cannot be seen from the existing waiting room.
Passengers say the only way passengers can see where the buses are going is to walk out in front of them.
The council's long term aim is to relocate the bus station from Timber Street to the Bath Road car park.
Chippenham town and district councillor June Wood said: "Parking spaces are so very precious and are not in good supply in Chippenham, but other spaces will be found elsewhere, although they might not be so convenient.
"There is some danger at the bus station and people's safety is what we have to put first."
A council spokesman confirmed all the parking spaces will be taken out. He said: "This has gone through five committees and has planning permission. Officers are working on the final details.
"Our officers have surveyed car parking provision, and have said there are sufficient spaces in the town to compensate for the loss of these spaces."
The improvements are a joint scheme between the district council and Wiltshire County Council.
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