Businesses have reacted angrily to a government proposal that could allow local councils to impose a tax on their parking spaces.
The British Chambers of Commerce (BCC) and the Business Centre Association (BCA) have slammed the idea. They say that the Workplace Levy Scheme (WLS) will further harm companies hurt by the recession.
“This is a stealth tax on business. Companies are already paying a number of other levies and charges, with more in the pipeline,” said David Frost, director general of the BCC.
“The WPL is purely a means to generate more funds for councils at the expense of local companies and their ability to compete.
“The government must recognise the financial burden businesses are already under and rule out any possibility of councils taking up the scheme.”
In December, the government issued a consultation paper seeking feedback on its proposal to give local authorities the power to introduce WLSs. The right of the government to bestow such powers was granted in the Transport Act 2000.
The BCA and the BCC are now urging its members to contact local councillors and call for an immediate suspension of the proposal.
“A Workplace Parking Levy could realistically cost businesses £1,000s every year on top of the initial implementation costs - representing salaries or much needed capital for reinvestment into the business,” argued Jennifer Brooke of the BCA.
It is already expected that Nottingham City Council will adopt the scheme and intends to adopt the parking tax levy, once its own proposal has obtained government approval.
© Crimson Business Ltd. 2009