Workplace parking levy creates concern
Hitachi Capital Vehicle Solutions' customers may be among the companies concerned about a new business tax being introduced in Nottingham.
The workplace parking levy has been approved by the city council and is now scheduled to come into force in 2012.
Originally, the fee was due to start being collected in 2010, but the onset of the recession resulted in the date being put back by two years.
In Nottingham, the cost per space, per annum is due to start at £253 but by 2014, it is expected this will have risen to £350 per year.
The Transport Act 2000 was the starting point for the scheme, as it paved the way for councils to introduce either workplace parking initiatives or congestion charging.
Designed to create a source of revenue from measures that reduce traffic levels, the venture requires all car park spots to be registered.
However, only facilities with over ten parking spaces will be affected by the charge.
It has been suggested penalties for not declaring the correct number of spots available will be hefty.
To check whether businesses are being honest, random checks will be conducted.
Employers can pay the fees themselves - or they might choose to pass it on to their workers.
Councils that adopt the initiative are being offered significant funding by the Department for Transport.
Transport minister Sadiq Khan voiced support for Nottingham's workplace parking levy proposals and promised the city £530 million to help with its tram extension plans.
However, numerous concerns have been raised about the scheme.
First of all, businesses have voiced objections about the cost of implementing and complying with the initiative.
In addition, it has been pointed out the charge will have an adverse effect on low-paid employees who have to foot the bill.
Residential areas may also see an increase in people trying to avoid the levy by parking outside town and city centres, it has been suggested.
The fact there may be inflationary consequences has also been highlighted, with some people claiming that companies will be forced to pass on increased costs to their customers.
However, on the positive side, it has been said the scheme should provide additional funding for public transport, it is easier to understand and implement than a congestion charging scheme - and it could reduce traffic jams.
Despite these potential benefits, the British Chambers of Commerce stated giving the go-ahead to Nottingham to implement the initiative is bad news for business.
Commenting on the Department for Transport ruling, director general David Frost suggested it was a mistake.
He stated: "Although they have delayed implementation for two years, Nottingham city council's decision to impose a workplace parking levy is still a blow to the local business community."
Mr Frost called on those in positions of power to think again about the move.
He insisted: "The key priority must be allowing businesses to drive recovery by creating wealth and jobs for the local area - so we would urge the council to reconsider the levy altogether."
Other authorities that have expressed interest in possibly implementing their own workplace parking charge schemes include Oxford, Cambridge, Exeter and Milton Keynes.
In addition, the Core Cities Group is also thought to be considering its options in this area.
This organisation represents Newcastle, Sheffield, Liverpool, Bristol, Leeds, Manchester and Birmingham. 
