Expert Office Advice

Councils in the North East region are being urged to reject a potential new “workplace” parking tax.

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

Nottingham City Council was recently given the green light by the Government to impose the workplace parking levy to help fund its £150 million contribution to extensions of the Nottingham tram system.

Under the scheme, any company with more than 10 staff parking spaces will have to cover the £250 annual charge for each one. It is planned that this charge would rise to £350 per space after two years.

The new parking tax has been labelled ‘outrageous’ by businesses in the area, as it seems inconsiderate to put an additional tax burden on firms at a time when Nottingham businesses, workforce and households will be recovering from a deep recession.

Richard Elphick, IoD chairman in the North East, expressed fears that this strategy has not been thought through properly.

“Whilst schemes designed to help ease traffic congestion are to be applauded, 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,” said Mr. Elphick.

The IoD North East approximate calculations weigh up what such a levy could mean to businesses.

For example, a 3 storey office block building that provides 13,333 to 40,000 square feet office space accommodation that is being advertised at a Tyneside business centre has 153 car parking spaces. This amount of parking spaces would amass a staggering annual charge of £38,250 – a significant sum which would put off potential tenants or discourage businesses from setting up in certain areas. Some firms would opt for passing the fee onto their staff, but this could make them less attractive in terms of recruitment.

“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,” said Richard Elphick, IoD chairman in the North East.

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