Commuters to be taxed for parking at work

The UK's first tax on parking spaces is expected to be endorsed by the Government today.

Commuters could be charged £185 a year to leave cars at work under the scheme, with the sum rising by 2014 to £350 per parking bay for firms with 11 or more.

The plans would be piloted by Nottingham City Council, the first local authority to express an interest in the idea.

The revenue raised will be used to pay for the expansion of the city's tram network which is expected to be given the go-ahead by Transport minister Sadiq Khan today.

The council could net £11.3 million a year through the fees.

It has been suggested that the tax, known as the Workplace Parking Levy, could cost firms £3.4 billion a year if rolled out nationwide.

The British Chambers of Commerce has expressed fears that if the Department for Transport approves Nottingham's bid to introduce the tax, other councils will submit similar plans.

Nottingham is home to many large businesses, including retailer Boots and credit-rating agency Experian.

Last year, the Derbyshire and Nottinghamshire Chamber of Commerce carried out a survey to see which of its members were against the tax.

It found 61 companies were threatening to relocate, while a further 74 were considering partial relocation or were shelving any plans to expand in the city.