The Government’s plans to tax businesses for using their own car parking spaces have not been well received. Under the Transport Act 2000, local authorities have the power to introduce Workplace Parking Levy (WPL) schemes, allowing them to charge firms that provide employees with private parking.

The Department for Transport is looking for feedback on how measures in the Act should be implemented. The Forum of Private Business (FPB) has responded by petitioning the Government to scrap the legislation altogether, believing it is unfair, discriminates against small-business employers and will force many more struggling firms to close.

“The tax burden is already a major problem for small businesses that are struggling to survive the recession. The Government should be working hard to support businesses and relieve this burden, not add to it,” said Phil Orford, the FPB’s Chief Executive. “Some employees have no choice but to drive to work, which means that getting rid of parking is simply not an option for most small businesses. WPL schemes would cost them thousands of pounds per year and local economies could be seriously hurt as a result.”

He added: “The imposition of steep parking charges is a huge issue for high street retailers, which are experiencing a significant decline in trade. Often, local councils readily place short-term revenue-raising above facilitating real economic growth. This stealth tax on parking smacks of more of the same.”

In its response to the Government’s consultation, the FPB outlined its opposition to the legislation, arguing that the WPL will have a damaging and disproportionate effect on small businesses, including those with more than 20 employees. The FPB has submitted a petition to the Government calling on it to abandon the legislation.

The FPB is concerned that the introduction of WPL schemes could have the following consequences for small businesses struggling as a result of the economic downturn:

• Businesses will continue to close if nothing is done. This will lead to more redundancies. The Government should be helping small firms at this time, not adding to the burden and cost of running a business.
• Businesses will cease to provide staff parking facilities. Staff will park on surrounding residential roads or take up parking provided for visitors to towns and cities. The economies of these towns and cities are likely to suffer as a result.
• Towns and cities introducing WPL schemes will become uncompetitive compared to those that do not. Businesses will consider relocating and local economies will suffer further.