The introduction of a new workplace parking levy has sparked debate throughout the business community.
But what could it also mean for employees? Could they now face a cost of extra hundreds of pounds for parking?
This comes at a time when the cost of living is increasing constantly with no signs of it slowing down.
The Scottish Government is handing powers to councils to introduce workplace parking levels which would mean workers wishing to park at their work would face a fee or charge – unless the employer decides to pay the costs itself.
The legislation – which could be introduced as early as next month – would aim to cut the numbers of drivers on roads and clean up the environment.
Fears were also raised after the SNP confirmed there will be no upper charge limit councils could impose, although transport minister Jenny Gilruth insisted local authorities could be trusted to “set an appropriate cost accordingly”.
Local authorities to decide
Local authorities who are considering a workplace parking levy will have to undertake their own consultation and impact assessments before deciding whether to implement such a scheme and how it should be designed and operate in their area.
Finance Secretary Kate Forbes confirmed in her December Budget that the government would be pushing forward with the parking levy after it was initially approved in a 2019 vote.
What are councils in the north & north-east doing?
Arguments have been made that a parking levy on workers would be punitive for commuters from rural areas across the north and north-east where public transport options are limited.
Aberdeen and Aberdeenshire Councils have previously said they would not introduce a levy, arguing it would penalise those who lived in areas where car ownership is high.
No levy – yet
It’s been confirmed today (Feb 9) that the three councils still have no plans to introduce it.
A Highland Council spokeswoman also said it has “no plans to implement” the scheme.
However, a spokeswoman for Moray Council did confirm the decision may be looked at again depending on the outcome of local government elections in May.
She said: “There are no current plans to introduce the workplace parking levy. However, following the forthcoming local government elections, the next council may revisit this decision.”
Aberdeen City Council leader Jenny Laing said the council’s position hasn’t changed – yet: “This is obviously the position of the current administration.
“It is impossible to say what might happen after the election as it will depend on the make-up of the administration after May.”
Who could be included?
In terms of exemptions it’s understood the Act does not cover shopping centres or retail parks.
However, councils could choose to include schools, colleges and universities.
Other exemptions include blue badge holders’ spaces, those for healthcare workers at hospitals, and parking at hospices.
How much could be raised from the scheme?
The actual cost would depend on the rates set by each local authority.
Currently in Nottingham employers with more than 10 staff parking spaces are required to pay just over £400 per space to the council with the funding used to pay for the city’s tram extension and other public transport projects.
Glasgow and Edinburgh city councils have expressed an interest in introducing the schemes.
It’s estimated workplace parking fees could generate up to £30 million for Glasgow.
A report from Glasgow City Council’s environment, sustainability and carbon reduction policy committee, indicated that potential revenues surpluses from implementing the scheme may range from around £2.5million to £6m per annum for a city centre scheme to around £20 to £30m per annum to city-wide scheme.
Impact on businesses
Business leaders are urging the Scottish Government to think again due to fears over “additional financial burden” for both companies and employees.
There are also calls for policymakers to reconsider the decision not to cap the levy.
Aberdeen and Grampian Chamber of Commerce (AGCC) policy director Ryan Crighton said: “This is another blow to businesses, many of whom have been financially crippled by the pandemic.
“We now have another government lever being used to encourage remote working and drive footfall away from our city centres.
“To support our economic recovery, the Scottish Government should think again about the negative impact that unlimited workplace parking levy charges will have on our businesses and city centres.”
Mr Crighton also called on the government to publish the recommendations of the City Centre Recovery Taskforce and back it up with significant additional funding to support cities to adapt to a post-Covid economy.
Scottish Retail Consortium director David Lonsdale said: “Workplace parking levies are a charter for extra cost and complexity.
“It will see firms taxed twice for any parking places they provide for staff, on top of the business rates already paid on those spaces.
“It comes at a time when consumers are facing cost of living challenges and retailers themselves are grappling with a hodgepodge of government-imposed cost rises – including higher employers’ national insurance contributions and the reinstatement of business rates.
“The only fixed point in a world of flux for retail at the moment seems to be rising taxes and costs, which are increasingly difficult to absorb.”
Scotland faces a ‘postcode lottery’
Scottish Chambers of Commerce chief executive Liz Cameron said: “Scotland’s businesses have consistently opposed the introduction of the workplace parking levy (WPL) in Scotland due to the additional financial burden it places on businesses and their employees.
“Businesses are still recovering from the financial impact of the pandemic, which has severely reduced trade and significantly increased costs over the past two years, hitting our town and city centres hard.
“By failing to impose a cap on charges, businesses across Scotland will now face a postcode lottery and some difficult decisions at a critical point in their recovery.
“Many businesses are concerned that local authorities, whose budgets are already stretched, may now seek to implement this levy as a revenue stream rather than for purely environmental reasons.
“To support Scotland’s economic recovery, the Scottish Government should think again about the negative impact that unlimited workplace parking levy charges will have on Scotland’s businesses.”
