Drivers could soon face a new tax on workplace parking spaces, with nearly a dozen local authorities reportedly drawing up plans to implement a Workplace Parking Levy (WPL). This development has raised concerns among critics who label it a "cash grab" that will ultimately be passed on to employees, effectively acting as a tax on commuting.
The WPL would require councils to charge businesses for each parking space they provide to their staff. The levy is intended to encourage people to walk, cycle, or use public transport instead of driving to work. However, opponents argue that it places an additional financial burden on both businesses and workers, particularly in areas where public transport options are limited.
Recent proposals include Cardiff Council, which plans to charge employers up to £750 annually per parking space. Bristol City Council has considered charges as high as £1,250 per year, while Oxfordshire County Council aims to introduce a levy of up to £600 per space across the county starting in 2028. These measures could generate substantial revenue for cash-strapped local authorities; Cardiff's plans are projected to raise £10 million annually, and Bristol's could bring in over £40 million.
Concerns about the levy have been amplified by past comments from Andy Burnham, the Mayor of Greater Manchester. In 2023, Burnham stated that workplace parking levies should be "on the agenda as we move forward," suggesting they are a reasonable measure if people opt to drive instead of using public transport. His previous support for such policies has led to fears that the Transport Secretary could approve similar schemes elsewhere.
Richard Holden, the Conservative shadow transport secretary, criticized the proposals, stating, "Labour councils have found their new stealth tax, and it lands squarely on people who go to work." He has called for Andy Burnham to "rule out the workplace parking tax."
The only existing WPL in the UK is operated by Nottingham City Council, a Labour-run authority, which charges businesses up to £600 per parking space and has generated over £90 million for the council since its inception. The Mail's analysis indicates that beyond Cardiff and Bristol, plans for WPLs have also been developed in Leeds, Oxford, Birmingham, and the London boroughs of Hounslow, Brent, and Camden.
Critics, including Howard Cox, founder of the FairFuelUK campaign, have described the WPL as an "outright attack on drivers," who they argue are already facing multiple financial pressures from fuel duty, road tax, and insurance. Luke Bosdet from the AA echoed these sentiments, calling the WPL "completely unjustifiable except if you're a council looking to grab cash from businesses and workers" and warning that such levies could harm consumer spending in city centers.
A Department for Transport spokesperson reiterated that "ministers have always been clear that any revenue raised by schemes like this must be used to deliver local transport policies."