Nearly a dozen local councils in England and Wales are developing plans to implement a Workplace Parking Levy (WPL), a charge levied on businesses for each parking space they offer to employees. This development has fueled concerns that the levy could effectively become a tax on commuting, with the cost potentially passed on to workers.
Andy Burnham, previously the mayor of Manchester, has expressed support for such levies, stating in 2023 that they should be "on the agenda as we move forward" and that "tougher measures" are reasonable for those choosing to drive instead of using public transport. His past remarks have led to fears that more councils, particularly those with Labour leadership, might pursue WPLs, especially as they seek new revenue streams to address budget shortfalls.
Several Labour-led and Green Party-run councils have already drafted proposals. Cardiff Council plans to charge employers up to £750 annually per parking space, a move projected to generate approximately £10 million. Bristol City Council has drawn up plans that could charge firms up to £1,250 per space annually, potentially raising over £40 million. Liberal Democrat-run Oxfordshire County Council is considering a levy of up to £600 per space, with a proposed nationwide implementation from 2028.
Critics, including Richard Holden, the Conservative shadow transport secretary, have labeled the WPL a "stealth tax" and a "blatant tax on work." They argue that the levy places an additional financial burden on individuals who drive to their jobs, especially as employers already pay business rates. Howard Cox, founder of the FairFuelUK campaign, described the proposals as an "outright attack on drivers" who are already contending with fuel duty, road tax, and insurance costs.
Concerns have also been raised about the potential economic impact on businesses and local economies. Luke Bosdet from the AA described the WPL as a "double tax" and questioned the logic of imposing extra costs on consumers, particularly in town and city centers already struggling with footfall. He suggested that if the revenue generated is passed on to workers, it could significantly reduce consumer spending.
While councils were granted the power to introduce WPLs by a previous Labour government, their current exploration of the levy is driven by increasing budgetary pressures. Typically, businesses with at least 11 parking spaces are subject to the levy, although some plans, like Nottingham's, require even smaller employers to register, adding administrative burdens.
Nottingham City Council currently operates the only existing WPL in the UK, charging businesses up to £600 per parking space and generating substantial revenue for the local authority. Plans for similar levies have also been reported in Leeds, Birmingham, and London boroughs including Hounslow, Brent, and Camden. The Transport Secretary has the authority to approve these schemes, and critics are urging against their endorsement.
Under regulations, any revenue generated from WPLs is intended to be reinvested in local transport infrastructure, such as park and ride facilities and cycling lanes. A Department for Transport spokesperson stated that ministers have consistently maintained that "revenue raised by schemes like this must be used to deliver local transport policies."