Businesses across England could face an eye-watering £3.4 billion bill for simply using their own car parking spaces.
This huge cost could become a reality if councils decide to apply for the controversial Workplace Parking Levy (WPL). Intended as a deterrent to personal car use, the scheme could be regarded as a measure to reduce transport-related emissions however WPL has already aroused huge opposition as an additional burden on businesses already pressured by a downturn in the economy. Many employers imposed with the tax could pass the expense onto their employees.
Nottingham City Council is the first council to have applied to impose the tax with the final decision from the Secretary of State for Transport, Geoff Hoon, now imminent.
The WPL will require all businesses to register workplace parking spaces, which could prove burdensome enough. However, businesses with ten spaces or more, will also suffer a financial strain because each parking space will have to be paid for. The levy will start at £185 in 2010, but will rise to £350 by 2014 assuming that the blueprint from Nottingham’s plans are taken up.
The British Chambers of Commerce (BCC) has calculated that if every eligible council covered by the consultation adopted the WPL, then businesses will be left with huge costs amounting to £3.4 billion.
The BCC is calling for the Secretary of State to reject Nottingham City Council’s application and to abolish the blueprint what they are calling a national ‘stealth tax’.
With the economy now in recession and firms struggling with cash-flow, the tax could prove detrimental for companies, towns and local economies.
Commenting on the WPL, Director General of the British Chambers of Commerce, David Frost, said:
“If councils go ahead with this oppressive tax, companies and employees will be hit hard at a time when they least need it.
“There is a real risk that towns and cities will see firms refusing to invest and in a worst case scenario relocating elsewhere. This isn’t a risk worth taking for a scheme which will not help reduce congestion.”
The BCC has launched a petition against the WPL which it is encouraging people to sign up at: http://www.britishchambers.org.uk/nostealthtaxonparking
