Councils press ahead with workplace parking levies
Councils in Cardiff, Oxfordshire and Bristol are moving forward with controversial Workplace Parking Levies (WPLs) that could see employers charged up to £1,250 for each staff parking space. The proposals, which require approval from the Department for Transport, have been given fresh momentum by Prime Minister Andy Burnham, who voiced his support for the measures in 2023 while serving as Mayor of Greater Manchester.
According to reports from the Mail, Mr Burnham backed such proposals in previously unearthed comments. He said: "I feel that we need to look at issues like a workplace parking levy – I think that has to be on the agenda as we move forward." This backing is seen as significant because any council wishing to introduce a WPL needs national government approval before it can begin charging.
What is a Workplace Parking Levy?
A Workplace Parking Levy is an annual charge imposed on organisations that provide parking spaces for employees. Unlike congestion charges paid by individual motorists, the levy is paid by the employer. Businesses may choose to absorb the cost or pass it on to staff, leading critics to describe it as a hidden tax on workers. The revenue generated is typically ring-fenced for transport improvements, such as better bus services, cycling infrastructure, and road maintenance.
Nottingham is currently the only city in the UK to have implemented such a levy. If Bristol's plans go ahead, it would become the second city to do so, setting a precedent for others.
Cardiff: £750 per space expected
In Cardiff, larger employers could be required to pay £750 for each staff parking space under plans due to be consulted on. The AA has warned that the levy could be viewed as a tax on workers and expressed fears that it could force businesses to relocate outside the city. Some business leaders have echoed this concern, suggesting the extra financial burden might deter investment and harm the local economy.
However, some residents and transport campaigners have welcomed the proposal, pointing out that the council has said the money raised would be used to improve public transport. The consultation will give local people and businesses a chance to have their say before any final decision is made.
Oxfordshire: a greener transport future
Oxfordshire County Council is considering a WPL as part of a wider package of transport measures. The council said these measures were "designed to work together to create a healthier, more accessible and attractive county". Cabinet member for transport Andrew Gant explained that the goal was to make journeys "quicker, more connected, more flexible and more reliable" and that walking, cycling and public transport should become "the natural first choice" for residents.
Mr Gant's comments highlight the potential benefits of the levy in reducing congestion and improving air quality, although critics remain sceptical about the impact on workers.
Bristol: second city to follow Nottingham
Bristol City Council is exploring the introduction of a WPL with charges potentially ranging from £600 to £1,250 per space per year. A public consultation is expected in the autumn. If approved, Bristol would become only the second city in the UK to enforce such a levy, after Nottingham.
Business West, which represents employers in Bristol, has hit out at the proposals. The organisation said the additional tax would negatively impact businesses already facing "significant cost pressure". The group fears the levy could undermine the city's economic recovery and make it harder for companies to retain staff who drive to work.
Political reactions
Prime Minister Andy Burnham's past comments have been seized upon by supporters of the levy, who see them as evidence of cross-party alignment on the issue. His support at national level could smooth the path for councils seeking DfT approval, though final decisions rest with local authorities.
Shadow Transport Secretary Richard Holden, however, condemned the scheme as a "stealth tax". He said the Conservatives "will always stand up for drivers" and would oppose any measure that punishes motorists. The debate highlights a growing divide between those who see WPLs as a necessary tool to fund sustainable transport and those who view them as yet another financial strain on workers and businesses.
