Concern over workplace parking levy

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So far Nottingham City Council is the only local authority that wants to tax businesses for allowing employees to park at work.

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

As part of the proposals put forward by councillors in Nottingham, firms with more than 10 parking spaces would be charged an annual fee of £185-per-bay from 2010.

This fee would rise to £350 by 2014, netting the city council £11.3 million every year. It says it would use the revenue to fund the expansion of the city's tram network.

The BCC said that if every council in England outside of London worked along the same lines as Nottingham, the bill facing firms would reach £3.4 billion.

David Frost, its director general, 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.

"This isn't a risk worth taking for a scheme which will not help reduce congestion."

Nottingham submitted its plans last year and was hoping for a prompt response, with the DfT granting the council permission to implement what has become known as the Workplace Parking Levy.