06/02/2009 - Firms could face £3.4bn parking tax
Companies could be hit with an extra £3.4 billion tax bill if plans to charge businesses for their car parking spaces are rolled out nationwide, a trade organisation fears.
The scheme, which would see local authority charging firms for allowing employees to park at work, is so far only being discussed by Nottingham City Council.
But the British Chambers of Commerce fears that if the Department for Transport approves Nottingham's bid to introduce the tax, other councils will submit similar plans.
The proposals would see firms with more than ten parking spaces charged an annual fee of £185 per bay from 2010. This fee would rise to £350 by 2014, netting the city council an estimated £11.3 million every year. The authority says any proceeds would be used to fund the expansion of the city's tram network.
But the chamber`s 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."
Copyright © Press Association 2009
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