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No upper charge limit will be applied on new workplace parking levy.

The Scottish Government is handing powers to councils to introduce a workplace parking levy, as authorities can do in England and Wales, which would mean workers wishing to park at their work would face a fee or charge – unless the employer decides to pay the costs itself.

Speaking at Holyrood’s Net Zero, Energy and Transport Committee, Scottish Government Transport Minister, Jenny Gilruth, confirmed that it will be up to local authorities to set how much each parking space will be charged at.

Local authorities who are considering a workplace parking levy - which has been branded a 'poll tax on wheels' - will have to undertake their own consultation and impact assessments before deciding whether to implement such a scheme and how it should be designed and operate in their area.

The coalition running Aberdeen City Council has previously described the tax as regressive, but plans could be brought forward after May's elections as the political make-up of the authority is refreshed.

In Nottingham, employers with more than 10 staff parking spaces are required to pay just over £400 per space to the council with the funding used to pay for the city’s tram extension and other public transport projects.

'The last thing businesses need'

Ryan Crighton, Policy Director at Aberdeen & Grampian Chamber of Commerce, urged the Scottish Government to reconsider its decision not to cap the levy.

"This is another blow to businesses, many of whom have been financially crippled by the pandemic," he said.

"We now have another government lever being used to encourage remote working and drive footfall away from our city centres. To support our economic recovery, the Scottish Government should think again about the negative impact that unlimited workplace parking levy charges will have on our businesses and city centres.

"We are also calling on the government to urgently publish the recommendations of the City Centre Recovery Taskforce, previously committed to as being published in the autumn, and back this up with significant additional funding to support cities to adapt to a post-covid economy."

Recovery at risk

Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said: “Scotland’s businesses have consistently opposed the introduction of the Workplace Parking Levy (WPL) in Scotland due to the additional financial burden it places on businesses and their employees.

“Businesses are still recovering from the financial impact of the pandemic, which has severely reduced trade and significantly increased costs over the past two years, hitting our town and city centres hard.

“By failing to impose a cap on charges, businesses across Scotland will now face a postcode lottery and some difficult decisions at a critical point in their recovery.

“Many businesses are concerned that local authorities, whose budgets are already stretched, may now seek to implement this levy as a revenue stream rather than for purely environmental reasons.

“To support Scotland’s economic recovery, the Scottish Government should think again about the negative impact that unlimited workplace parking levy charges will have on Scotland’s businesses.”

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