Workplace parking levy approved

A parking tax for businesses in Nottingham has passed its final official hurdle.

The city council approved the Workplace Parking Levy which will come into force in 2012 and start at £253 per space - per year.

Business leaders have warned it could damage the local economy but the council says it will pay for public transport projects.

The recession has forced a delay to the original 2010 start date.

Last month transport minister Sadiq Khan backed the proposals and pledged £530m of government money towards the city's tram extension.

At a meeting of the council on Monday councillors gave the final go-ahead and approved the delay in bringing in charges.

Councillor Jane Urquart said: "During the time it was with government for their decision we had a number of conversations with them and came to the conclusion that yes, a start date of April 2012 was sensible given the current economic climate in the hope that by then we will be pulling well out of recession and ready."

'Deeply flawed'

Nottingham is the first council to bring in the scheme, after ministers gave local authorities the powers in 2000 to introduce workplace parking charges to fund public transport improvements.

The Conservatives and the chamber of commerce criticised the plan, saying the tax would be an extra burden on business when it could least afford it.

The government's Transport Select Committee produced a report branding Nottingham's proposals "deeply flawed".

It said the consultation had not made it clear if the scheme had got the backing of larger employers in the city, but council officials said full consultation has taken place.

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