Parking tax to be announced in Nottingham

Date: 31st July 2009

Small business owners with their own cars are facing a rising tax burden, if new regional pilot parking system is adopted by local authorities nationwide.

Nottingham City Council announced today that it will charge commuters an extra £185 a year in tax, if they park their cars at work.

However, many small businesses, including business start-ups, will avoid this extra taxation - as it will eventually apply only for firms with 11 or more parking bays onsite.

The tax scheme could result in fewer people bringing their cars to work and using public transport instead.

Business group the British Chambers of Commerce said today that the tax move was not welcome in the current economic climate.

"Companies will be hit with an additional tax at a time when they least need it while towns and cities will see companies refusing to invest or in the worst case scenario relocating," it stated.

Theresa Villiers, Conservative transport spokeswoman, also signalled opposition to the scheme.

"These new charges will be a real blow to the city and we oppose them," she said.

Nottingham is likely to introduce the scheme in 2012, with other cities following suit over the years to come.