Cardiff council’s parking charge plans are ‘double tax’ on drivers

Cardiff council has approved introducing a workplace parking levy but the details are still being finalised

Two major motoring organisations have questioned plans to introduce an annual charge for businesses based on the number of employee parking spaces they provide. Cardiff council has approved introducing the scheme, and says it could raise £10m a year.

The scheme is designed to encourage workers in the city to travel either by walking, cycling, or using public transport. The money raised is ring-fenced to fund public transport projects such as bus routes and cycle lanes.

The size of which businesses any such scheme would affect were it to ultimately be implemented is currently unknown however the council is using an estimate of £750 per employer-provided parking space. Never miss a Cardiff story by signing up to our daily newsletter here

The only other place in the UK that has such a charge is Nottingham, which introduced it more than a decade ago.

Both the AA and think-tank the RAC Foundation have raised concerns.

Jack Cousens, head of roads policy at the AA, said: “The most common argument against a workplace parking levy is that it is a tax on workers. The council aims to use the levy to raise funds to improve public transport services.

“Essentially this means a section of the city’s travelling public will be targeted (assuming that employers will pass the levy on to their employees) for the benefit of the rest. This is not fair and equal taxation.”

He also raised the point that workplace parking spaces are already taxed through business rates so any WPL would essentially act as a “double-tax” – which he called “unacceptable”.

Mr Cousens said: “City centre workers are some of the most regular and best consumers and customers feeding money into shops and services at a time when town and city centres are seeing lower footfall and spending.

“Undermining that source of income, because the workers having to fork out more of their money on travel and parking means they have less to spend in shops, is not very clever. “

Steve Gooding, director of transport policy at the RAC Foundation, said: “The fact that Nottingham is the only place in the UK with such a scheme hints at the difficulties – politically and practically – of implementing the levy even though the national enabling law was passed more than quarter of a century ago.

“Cardiff Council is explicit that its proposal is a way of raising money to support public transport but businesses will rightly ask why they should have to pay for something that might not benefit them.

“One of the reasons firms offer parking is that often trains and buses don’t – and won’t – service their premises.”

He questioned whether if such a levy was being implemented with environmental aims any consideration would be given to businesses who have employees who drive electric cars as their vehicles would not emit exhaust fumes.

Cllr Dan De’Ath, the council’s member for climate and transport, said discussion around the scheme is in its early stages and that any details, if implemented at all, would be subject to an extensive consultation first.

However, he said “doing nothing is not a realistic option” as the city is facing increasing congestion and pressure on its transport network and less funding.

“The assessments carried out to date indicate that a workplace parking levy is the lowest-burden option capable of generating a significant and reliable funding stream for transport improvements.

“Despite concerns raised when the scheme was first proposed Nottingham has continued to attract investment and grow its business base with improved transport links regarded as an important factor in supporting the city’s economic development.”

He said the council will work closely with businesses as proposals are developed”.