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Workplace parking tax confirmation slammed by Chamber of Commerce

Date: 03 August 2009

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Nottingham City Council's Workplace Parking Levy has received the green light from the Government, though the recession has meant a two-year delay in implementation.

The tax, which will eventually see employers charged £350 per space per year, has been delayed until April 2012 instead of the original the 2010 implementation plan. From introduction, companies in the city will have to pay £253 per space if they have more than 10 spaces, rising over the next two years to an eventual £350 per space. Even those businesses that don't have 10 or more spaces would have to apply for a licence that gives them a 100% discount from the charge. The original 2010 introduction would have been at £185 per space, but the delay has seen the council decide to introduce the levy at a higher point.

The decision to delay the charge was taken as the Government hopes the economy will be healthier by the time the of the Levy's arrival, and businesses will be less impacted by the predicted 0.5% of turnover Nottingham City Council admits the WPL will cost businesses.

Business groups have reacted angrily to the announcement. "Although they have delayed implementation for two years, Nottingham City Council's decision to impose a Workplace Parking Levy is still a blow to the local business community," said David Frost, director general of the British Chambers of Commerce. "The key priority must be allowing businesses to drive recovery by creating wealth and jobs for the local area - so we would urge the Council to reconsider the levy altogether."

Money generated by the levy will be ploughed into public transport, including the £67m redevelopment of Nottingham railway station.

"The fact that we have over two years before the WPL is implemented gives us the opportunity to work with businesses to help them develop more sustainable transport policies, encourage behavioural change and reduce congestion, which has a significant impact on business," said councillor Jane Urquhart, Nottingham City Council's portfolio holder for transport and area working.