Parking taxation could 'cost firms £3.4bn'

Date: 6th February 2009

Small businesses could face an additional £3.4 billion in charges if a new taxation on car parking is rolled out.

The department for transport's proposed workplace parking levy - which could impose charges of up to £350 - looks set to be implemented by Nottingham City Council, but could soon be seen up and down the country.

According to the British Chambers of Commerce (BCC), the taxation would provide another unnecessary burden for firms during a challenging time.

Director general of the BCC, 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."

In a bid to help small businesses through the recession, Royal Bank of Scotland and Natwest revealed that they would be releasing £3 billion in loans for companies.