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Parking tax hits employees

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Motorists could be charged up to £350 per year to park at their work place. The previous Labour government announced this workplace parking levy last August but it seems that an increasing number of local authorities are implementing this scheme as a fund raising method despite the change in government.

The workplace parking level applied to employers with 11 or more staff being charged £250 per space per annum. This cost is due to rise within the next two years and is left up to the company whether or not to pass this charge on to their employees.

The new coalition had been quoted early this year to say that there would be “an end to the war on motorists”. Regardless of this councils including Bristol, York, Devon, Hampshire, Leeds, Bournemouth, South Somerset and Wiltshire are actively considering the scheme

Critics fear that councils may use the levy after Eric Pickles told local authorities that they need to find ways to increase revenue due to budget cuts.

 

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Although the new tax is designed to encourage workers to use public transport and ease city centre congestion. Business leaders have expressed concern over the new charges. “It is the wrong tax in the wrong place at the wrong time,” said David Frost, the director-general of the British Chambers of Commerce. “This is the worst possible time for it to be introduced as we are trying to get businesses to grow all over the country.”



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