But why should he "pay the fixed penalty"? Wouldn't that be an admission of guilt?

Totally agree; it's just an attempt to bully you into admitting guilt that you to not agree with.

The guilty party here is the local council, for neglecting to provide proper signs at the end of the shared-use section.

In my opinion the police share the blame, for failing to recognise the problem, and for abusing their powers.

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