Business groups condemn workplace parking tax

Government plans to impose a tax on firms that provide staff car parking have been criticised by business groups.

The Workplace Parking Levy (WPL), which was recently given the go-ahead by ministers, could see companies with 11 or more parking spaces charged £185 a year for each space.

The WPL will be piloted by Nottingham City Council, although it is not expected to be introduced until 2011.

Transport Minister, Sadiq Khan, claimed the scheme will cut congestion and generate funds to invest in local public transport.

Yet the Forum of Private Business (FPB) described the initiative as ‘scandalous’ and ‘little more than a stealth tax.’

FPB Chief Executive Phil Orford commented: ‘It's the business equivalent to introducing a driveway tax to charge people for parking outside their own homes. This announcement could not come at a worse time for smaller businesses, who are struggling with rising costs on almost every front and trying their best to make it through the recession.’

Meanwhile David Frost, Director General of the British Chambers of Commerce (BCC), said the scheme was a ‘blow to the local business community.’ The BCC estimates that the parking levy could cost firms £3.4 billion every year if it is adopted by every council in England.

However Richard Hebditch, of the Campaign for Better Transport, welcomed the move.

‘The levy will raise vital money to invest in great public transport improvements to help to reduce local traffic problems - which is good news for local businesses and local people.’