Nottingham Workplace Parking Levy rise 'tough for firms'

A team of camera cars enforce Nottingham's Workplace Parking Levy

A sharp rise in Nottingham's Workplace Parking Levy has been criticised by a business group.

From 1 April the levy, applied to firms with 11 spaces or more, will go up from £288 to £334, an increase of 16%.

The Derbyshire and Nottinghamshire Chamber of Commerce said the rise was hitting harder because the downturn had gone on longer than expected.

But the city council said the increase was planned and the money was being used for transport improvements.

The charge was introduced in April 2012 to help pay for new tram lines, bus services and a refurbished railway station.

Long-term debt

Chairman of the chamber of commerce, George Cowcher, said: "Business is still reeling from having the charge introduced in the first place and while they were aware it would step up, the rise is higher than the general level of inflation and that is of concern.

"If you are a business which is struggling to make ends meet then it is another burden and that will affect the amount that can be invested in the business, it may affect the number of people it can employ, it just makes life harder."

The council's portfolio holder for planning and transportation, Jane Urquhart, said the rise was fixed by the original order issued by the Secretary of State for Transport and could not be altered.

"It does not make it easier to pay but it does mean that businesses, since October 2011 when we first started licensing, have known the way the levy would step up.

"This does give all employing organisations, whether they are businesses or public sector organisations time to plan for that."

Ms Urquhart added income figures from the first year would be released at the end of April but were "on track" with initial predictions.

Current funding deals mean the levy is expected to be in place until the tram is paid for in 2033.

Depending on inflation, the levy will be £363 from 1 April 2014 and £380 the following year.