News Analysis - Council parking charges: Nottingham Council's private parking charges pile pressure on businesses

Nottingham City Council has already introduced a legal obligation for employers to obtain parking licences by October 2011: as of April 2012, if an employer in the city has 11 or more spaces then it will have to pay £250 a year for each space.

The council estimates that the scheme will raise £14m a year and affect only 15% of businesses because business car parks with fewer than ten spaces incur no charges.

The Department for Transport confirmed to PB that it is responsible for giving approval to each application and does so judging against criteria set out in the Transport Act (2000). This means that, without further legislation, secretary of state for transport, Phillip Hammond, cannot unilaterally block applications. As Chris Gorman, spokesperson for the Forum of Private Business, noted: "When the Nottingham scheme was given the go-ahead last year, we said it would only be a matter of time before it spread to other towns and cities. Sadly, it appears those fears will soon be realised."

Protest
The FPB has urged small businesses to make their opposition clear to any council considering such a scheme. Somerton-based broker Higos has space for 50 cars at its headquarters and the council there is reputed to be considering the scheme. Managing director Ian Gosden confirmed that he would make his opposition to a yearly charge of £12,500 clear through his local chamber of commerce. He stated: "It is frustrating that people are kicking small businesses at every turn. We should be encouraged, not hampered." Gosden fears that businesses would consider relocating where the measures are introduced.

South Gloucestershire-based Brightside Group has space for 500 cars at its headquarters near Bristol, where the scheme is further cited as being under consideration. Chairman of broking Martyn Holman concurred with Gosden: "If Bristol brings it in, it might benefit our recruitment efforts because we can still offer free parking. I'm sure we would use that fact."

Costly
LV is another company located close to a council touted as looking at the option. The insurer supplies an 800-space park-and-ride scheme to service its headquarters located between Bournemouth and Poole.

A spokesperson said: "We believe the council is not currently planning to take part in this scheme, which we think is the right move. Motorists already pay significant costs in tax, as do businesses: this is just a further expense."

Source: Professional Broking – September 2010