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Parking 'tax' edges nearer

Date: 09 January 2009   |   Author: Tom Webster

Car park

In a move that's angered small businesses, the Government has moved a step closer to introducing charges for companies with on-site parking spaces.

A consultation has been launched asking for feedback on plans to give local councils the power to set the rates that could see businesses charged around £200 per space per year.

According to the Department for Transport, the consultation "invites your comments on the Government's proposals for regulations to enable local authorities to introduce Workplace Parking Levy schemes should they choose to do so".

Plans are still advancing to bring in such a scheme in Nottingham, where firms with more than 10 on-site spaces could be charged an annual £200 per space. The city's council hopes it will be up and running from 2010.

The plans have angered small businesses, with a spokesman for the Forum of Private Business saying: "Our members already pay enough in taxes. These are supplementary business rates and we are against those."

The spokesman warned schemes such as this or congestion charging could destroy inner city businesses.

"Companies will try and bypass these however they can," he said, suggesting many may relocate to out of town sites.

Money raised from parking and congestion charges would be used to improve a city's public transport system.

To comment on the Government's plans visit: