Nottingham’s unpopular workplace parking levy has received renewed opposition after a 16% hike was imposed. From the beginning of April, companies will pay £334 per car parking space if they have 11 spaces or more, up from £288 previously.

But despite protests from the local business community, a Nottingham City Council spokesperson said the authority did not have the power to reduce the increase, explaining that the secretary of state for transport decides the prices.

“The scheme of fixed increases has been known and widely publicised for some time, giving employers the time to incorporate the costs into their business planning,” added the spokesperson.

The Derbyshire and Nottinghamshire Chamber of Commerce said the move increases the financial burden on business at a time when firms need every penny to invest in what they are doing to sustain and create more employment in the city.

Chief executive George Cowcher added: “While the Chamber – and the majority of its members in Nottingham – remains opposed to the workplace parking levy, its focus is now on helping businesses to mitigate the impact the WPL will have on them.”

Income from the scheme, which began last year, will fund the tram extension and station redevelopment in the city.