Millions of drivers may face new tax on parking every day – it could start this week
DRIVERS could soon face a new parking tax in one major UK city and it could start this week.
The Workplace Parking Levy will charge employers and education organisations for the number of parking places they provide that employees and students regularly use.
Edinburgh City Council is set to make a decision on the introduction of the tax on Thursday.
The fees will be in the form of a yearly charge to obtain a licence, but employers who are caught without one can face hefty fines from the council.
The levy comes after Scotland passed new laws to allow local authorities to create new tax measures.
Under the Transport (Scotland) Act 2019, councils in Scotland can introduce a levy in their local area or part of their local area.
The council website said: “For businesses the cost of congestion impacts business by extending journey times, later deliveries, and increasing worker time on the road rather than in productive work.
“For residents and commuters, congestion increases journey times, whether they travel by car or some modes of public transport and active travel.
“Congestion has an impact on air quality. Studies have linked small particles from road traffic to the cause of a variety of health effects including heart and lung disease, links to premature death, diabetes, dementia, mental health and birth outcomes.”
While the decision has yet to be confirmed, the council said that it had not been given funding to set up the tax scheme.
The rollout of the parking levy could cost the council roughly £100,000.
Official documents stated: “No such funding currently exists for the next of future stages of introducing a WPL, and that the next immediate costs would have to come from reserves at a time of huge strain on public finances and likely further cuts from the Scottish Government.”
Despite the cost concerns, the council suggested the tax would offer “considerable benefits” to the city.
The council added: “We must continue to focus on effective measures which can encourage a shift from private car use towards more sustainable modes of travel.”
If Edinburgh City Council votes in favour of the WPL, it will join Nottingham City Council.
Nottingham City Council currently charges employees £550 for an annual licence, which most employers pass on to their employees.
Drivers could also face penalties of up to £300 if caught without the correct permits.
Other cities that have shown interest in the motor tax include Reading, Glasgow, Reading, Cambridge, and Hounslow and Camden in London have all shown interest in a WPL.
Bristol recently voted against the introduction of a WPL due to cost of living increases.
According to the BBC the plans were scrapped due to inflation and a stalled underground mass transit system.
Bristol mayor Marvin Rees said: “Now is not the time to create more costs for people.”
Leicester City also scrapped plans to introduce a WPL after the deputy city mayor councillor Adam Clarke said it was impossible to proceed with the levy due to political and economic circumstances.
According to Transport for London, WPLs are used to encourage commuters to switch away from using private vehicles to get to work or school.