£250 parking tax scheme to be announced today

Motorists in Nottingham who drive to work may soon have to pay a £250 parking tax under a Government scheme which is expected to be announced today.

Under the scheme businesses that employ 11 or more staff who park their cars in company bays will be charged for each space.

Employers would be allowed to pass the cost on to their staff.

An estimated 40,000 commuters in Nottingham drive to work and some businesses have already threatened to leave the area if the scheme is introduced.

Business associations oppose the extra cost, which has been put at more than £3 billion if it were rolled out nationwide.  It is estimated that about 10 million people in Britain drive to work every day.

The scheme, which has been condemned by critics as a ‘tax on jobs’, will initially charge £250 per space but the cost is bound to rise in successive years.

The schemeis expected to be introduced in 2012 but other councils are expected to follow suit.

The scheme is expected to be endorsed today by Transport Minister Sadiq Khan during a visit to Nottingham.

An estimated 500 firms in the city will be hit by the scheme, which will be enforced by CCTV cameras, spot checks and number-plate recognition systems, but critics claim that the scheme is unfair and penalises shift workers who rely on cars to get to work at night when public transport is unavailable.

A spokesman for the AA said:

“It is discriminating against those employers who have parking spaces, which gets vehicles off the street.

“These tariffs apply around the clock, which is especially unfair to shift workers who rely on their cars because public transport is not available. 

“This is more about generating a revenue stream than reducing congestion and will require snooping to enforce it properly.’

Nottingham council estimates that the parking charge will raise £5.6 million in the first year, and the money will be used for new tram and bus routes and refurbishment of the main train station.

Environmental groups have welcomed the move.

Richard Hebditch, of the Campaign for Better Transport, said:

“It has the added benefit of tackling unnecessary commuter journeys, one of the main causes of congestion.

“Failing to deal with the causes of congestion is simply not an option.

“We put forward the idea of workplace parking levies as a fairer way to raise money to invest in the future of local transport services. We are pleased that the people of Nottingham will be the first to benefit.”

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