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Parking 'tax' could cost businesses £3.4bn

Date: 06 February 2009

UK businesses could face a cost of £3.4bn if a controversial workplace parking levy is introduced, according to the British Chambers of Commerce (BCC).

Nottingham's city council already has plans to introduce the charge that could see businesses pay up to £350 annually for every parking space provided at work. The charge will start at £185 in 2010 before nearly doubling in 2014.

The Government recently launched a consultation on the scheme that could see it rolled out nationwide.

The AA has joined forces with the BCC against the scheme and is encouraging its members to sign a petition on the BCC's website.

AA president Edmund King has decried the charge, saying: "The last thing that employees, and indeed employers, want is a tax on work in the current financial and economic climate.

"This tax will do nothing to cut congestion but potentially could do much to increase unemployment."

David Frost, the director general of the BCC, also claimed the charge would do little to cut congestion, saying: "There is a real risk that towns and cities will see firms refusing to invest and in a worst case scenario relocating elsewhere."