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Growth of workplace parking tax slammed
23 February, 2010
Plans for workplace parking taxes are emerging across the UK, with York and Exeter city councils first to follow Nottingham’s confirmed scheme by revealing proposals for charging businesses that provide parking for employees.
However, the Forum of Private Business branded the additional tax burden, intended to cut congestion and reduce carbon emissions, as “unfair, unsustainable and unacceptable”.
“It is an attempt to tax struggling businesses for employing people at a time when we should be facilitating them to take on staff. Instead we are penalising them,” a spokesman told BusinessCar. “It is very much a case of looking for short-term gain at the expense of longer term economic stability.”
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South West Water, which employs around 500 people in Exeter, said it would have to examine the proposal’s implications but would prefer a scheme “encouraging people to use other methods of transport rather than penalising those who have to use their vehicles to provide essential services”.
But John Rigby, director of economy and development at Exeter City Council, said a Workplace Parking Levy is an effective way of managing demand, adding that without it, congestion will continue. “It is more effective to charge people who currently pay nothing to park, than to extract money from those who pay parking charges already,” Rigby said.
York Chamber of Commerce president Shaun Watt claimed there is “little evidence” that a WPL will reduce congestion in the city, and is worried about the impact on York’s long-term prospects. “We are concerned that if the WPL is introduced then we could see new businesses turning away from our city and setting up elsewhere,” he said.
In a further development, Conservative leader David Cameron has now said that, despite the party previously opposing such schemes, if it wins this year’s general election it will leave it up to local councils to decide whether or not to introduce WPLs, suggesting a lack of resistance to schemes becoming widespread.
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Readers' comments
We purchased a building because of its w/house capacity. It happened to have room for 20 car parking spaces. So as an employer I will be taxed for a licence to provide spaces which were irrelevant and then the employees will be taxed because they are making use of a facility that I have freely provided. Cameron had better watch out as he appears to be doing nothing for the people on the street!
WPL is totally unfair and an outrageous way of topping up cash-strapped councils to implement schemes that no-one wants them to do in the first place under the guise of reducing carbon immitions and city centre conjestion. Nottingham wants to use funds raised from WPL to fund an extra tram line - I was always brought up to save for what I wanted to buy - Nottingham's plan to rob car owners to pay for the tram is ill thought out, scandelous and hugely unpopular - unlike Robin Hood who had it right (rob rich to pay the poor) - the council have got it the wrong way round - robbing car owers to pay for their schemes.
I think this is an unacceptable burden on UK companies trying to run an effective business. Are companies to offer parking spaces in the same manner as benefits, only allowing certain staff to use their car parks? Or will they be taxed on parking spaces whether used or empty? Public transport may be available in large cities, but for a lot of people, the only way to get to work is by using their car. Perhaps the government and local councils would prefer that we all sit at home and claim unemployment benefit - they can't have their cake and eat it!