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Councils urged to say no to new car parking tax

The North East Chairman of the Institute of Directors has challenged councils in the region to reject a potential new “workplace” parking tax.

The country’s first workplace parking charge is to be implemented in Nottingham, and it has been predicted that other councils across the country will follow suit.

Under the scheme, any firm with more than ten staff parking spaces will be charged £250 annually for each one.

But Richard Elphick, IoD chairman in the North East, has called the new Government policy into question.

“Whilst schemes which help ease congestion on our roads are to be applauded, I fear that this strategy has not been thought through properly.

“It is a case of putting the cart before the horse. It is no good introducing a work place parking space “tax” until substantial investment has been made to establish decent public transport systems and services.

The IoD North East has been weighing up what such a levy could mean to businesses.

For example, a three storey office block providing 13,333sq ft to 40,000 sq feet accommodation is advertised at a Tyneside business park with 153 car parking spaces.

Mr Elphick said: “This number of car parking spaces would attract a massive annual charge of £38,250 – a significant sum which could deter a business from relocating to or setting up in a particular area.

“While firms would have the choice of passing the fee onto their employees, this could make them less attractive in the recruitment stakes.

“Councils that do not levy this charge will have a competitive edge when it comes to attracting much-needed inward investment. This is the reason why North East local authorities should resist the temptation to impose a “workplace” parking tax.”

David Faulkner, deputy leader of Newcastle City Council, said: “We are not seeking these powers for Newcastle and have no plans to introduce company parking charges. Many city centre employers already charge their employees for parking at work - including the city council.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .