Nottingham City Council has defended its plans for a workplace parking levy and warned that the cost of traffic congestion far outweigh any local charges.
The city, which is the only local authority so far planning to introduce a WPL, has rejected claims by the British Chamber of Commerce that a national scheme would cost £3.4bn a year. And 89% of employers who answered a new survey, conducted by Derbyshire and Nottinghamshire Chamber of Commerce, believed the city council’s plans for a levy would harm the economy of Nottingham.
The council has estimated that delays caused by congestion on local road networks in the Nottingham area cost some £160M a year, while the cost to the East Midlands economy is £935M a year.
But the BCC is calling for transport secretary, Goff Hoon, to reject Nottingham’s plans, and has launched a national petition against the scheme.
Director general, David Frost, said: ‘If councils go ahead with this oppressive tax, companies and employees will be hit hard at a time when they least need it.
‘There is a real risk that towns and cities will see firms refusing to invest and, in a worst-case scenario, relocating elsewhere. This isn’t a risk worth taking for a scheme which will not help reduce congestion.’
But Cllr Jane Urquhart. transport portfolio holder at Nottingham, said: ‘The cost of congestion to businesses far outweighs the cost of the levy on businesses.’ The city council’s scheme is to begin in April next year and is expected to raise £91M for local transport schemes, if it runs until October 2030. The levy will help fund projects such as the extension to the tram network (NET Phase Two).
Jason Gooding, project manager, Nottingham City Council, recently told the transport select committee: ‘If commuters are a problem,in smaller areas, then it [a WPL] is normally low-cost, less risk, normally easy to put in and with that, also easier to take out should something else more favourable come up in future.’
He said revenue stream from the levy would be used to fund residents’ parking schemes under the Traffic Management Act during the first three years, in order to mitigate a knock-on effect of cars trying to park on residential streets. Only 15% of businesses – those with more than 10 liable parking spaces – will have to pay the levy. The others will receive a 100% discount.
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