Fury as drivers face £1,250-a-year ‘double taxation’ latest blow | UK | News

Motorists are facing new workplace parking charges as councils in England and Wales prepare plans for taxes previously backed by Andy Burnham.

Nearly a dozen cash-strapped local authorities are considering introducing a Workplace Parking Levy (WPL), prompting warnings that more councils could resort to such charges in search of extra revenue.

The plan calls for charging businesses for parking spaces provided to staff; Critics argue that the cost may ultimately be passed on to workers through additional wages, reduced benefits or smaller wage increases.

The debate intensified after Labour-run Cardiff Council approved plans that could see employers charge up to £750 a year for each workplace parking space they provide.

Bristol City Council, run by the Green Party, is considering levies of up to £1,250 per area each year, while Liberal Democrat-controlled Oxfordshire County Council plans to introduce charges of up to £600 per area from 2028.

Critics accused councils of creating a “double tax” on businesses and motorists, arguing that firms already pay business rates and could face further financial pressure.

Why do municipalities evaluate workplace parking fees?

Workplace Parking Taxes aim to encourage more people to use public transport, cycle or walk to work, while also generating money to improve local transport, the Daily Mail reports.

But opponents say councils are increasingly looking at these schemes as a way to raise funds as local authority budgets come under increasing pressure.

There are concerns that more plans could be introduced as councils need approval from central government, and Mr Burnham has previously supported the idea.

In comments revealed by the Mail, Mr Burnham, while serving as Mayor of Greater Manchester in 2023, said: “I think we need to look at issues like business parking tax; I think that needs to be on the agenda as we move forward.”

He added that “tougher measures” could be justified if people continued to choose to drive rather than use public transport.

Which municipalities are planning workplace parking taxes?

Cardiff Council estimates the proposed scheme could generate as much as £10 million a year, while Bristol believes its plans could generate more than £40 million.

Since Cardiff approved its proposals, business parking tax plans have also emerged in Bristol, Leeds, Oxford, Birmingham and the London boroughs of Hounslow, Brent and Camden.

The only existing business parking levy in the UK operates in Nottingham; where the Labor council charges businesses up to £600 for each available parking space provided to staff.

The authority says the scheme has raised more than £90 million since its launch.

Who will pay the workplace parking fee?

Under many proposed programs, businesses with 11 or more employee parking spaces would be required to pay fees.

However, employers with ten or fewer sites in Nottingham must still register with the council, creating additional administrative requirements.

Councils that implement the plans are expected to spend the money raised on transport projects, including parking and cycling services, cycle lanes and improvements to public transport.

What have critics said about business parking taxes?

Shadow Transport Secretary Richard Holden criticized the proposals, saying: “Labour councils have come up with the new privacy tax and it cuts straight into people going to work.

“This is a blatant tax on work and is now being applied to Bristol, Oxford, Leeds and beyond – the Labor Transport Secretary has veto power and refuses to use it.

“Conservatives will always side with motorists. Andy Burnham should ignore business parking tax.”

Howard Cox, founder of the FairFuelUK campaign, said: “This is a clear attack on drivers.

“Motorists who are already burdened with fuel duty, road tax and insurance are being targeted once again, ostensibly under the green policy but actually just getting to work.”

AA’s Luke Bosdet described business parking taxes as a “double tax”.

He said: “Unless you’re a council looking to take cash from businesses and workers, WPL isn’t entirely justified.

“Cardiff City Council thinks it could make £10 million a year from WPL. If even half of that was passed on to workers, that would take £5 million a year out of potential consumer spending in the city.

“How foolish is it to target the most regular customers with extra tax when towns and city centers are struggling with an influx of consumers?”

A Department for Transport spokesman said ministers had “always been clear that revenues from schemes such as this should be used to deliver local transport policies”.