Revealed: Radical proposal for Leicester workplace parking levy to cut congestion and pollution

Radical plans to charge Leicester employers a workplace parking levy have been proposed.

Sir Peter Soulsby says he is keen on the idea of taxing company parking spaces as a means of trying to reduce congestion and traffic pollution.

The city mayor said money raised by the levy would be entirely re-invested in measures to boost public transport in the city.

He confirmed he was considering the idea after a number of Labour councillors said they were surprised to see the controversial measure in a draft of the party’s manifesto for May’s mayoral and city council elections.

Sir Peter confirmed to LeicestershireLive that he was looking at a model similar to Nottingham which was the first city in the UK to bring in a workplace parking levy (WPL) in 2012.

While other cities are also considering schemes, only Nottingham has so far introduced a levy.

He said: “We intend to consult on a workplace parking levy.

“We recognise there may be people who have concerns about what it might mean for those who would want to invest in the city and those who would have to pay it.

“At this stage our commitment is consult and find out what everybody thinks of the idea.

“I am very keen that we should look at this.”

The idea proved massively controversial in Nottingham where it has generated more than £53 million since it was implemented.

That cash has been used to fund the city’s tram network but Sir Peter has indicated revenue raised in Leicester would be used to improve buses.

The mayor said many of the key details of a Leicester WPL would only be confirmed after a consultation which he said could begin ‘very quickly’ should he be returned for a third term leading Leicester City Council on May 2.

Key questions

But there are key questions that will need to be addressed.

How much will it the charge be and how much will it raise?

Sir Peter said early calculations suggested between £5 million and £7 million a year would be raised on Leicester.

He said this was calculated based on the Nottingham charge of £415 per space per year.

What would the money be used for?

Sir Peter said: “Every penny will be used to improve public transport. We do not have and will not have a tram as Nottingham has but that revenue could be very valuable to improve bus services and create a comprehensive cross city network

“It could be used to subsidise services, fund new routes on top of those that only serve the main roads at the moment.

“We could have more frequent off peak buses?”

Who would have to pay it?

The mayor said he was looking at following Nottingham’s lead where businesses that own 11 or more spaces would be liable for the levy,

He added: “There may be some exemptions such as the hospitals and schools.

“We would have to decide that.

“I think if we are asking other people to pay it they would almost certainly expect the city council to pay it too.

“Some small and medium enterprises with just a handful of parking spaces could be exempted.”

Which parts of Leicester would be covered by a WPL?

The area inside the Inner Ring Road would seem the initial earliest choice said Sir Peter.

He added: “That is not to say the area could not be wider than that.

“Again this is something that we would have to seek views on during the consultation.”

Will it the additional cost not lead to job losses or scare off investors and deter other companies from setting up in Leicester?

“The experience in Nottingham is that it has not prevented investment or led to job losses.

“We will listen very carefully to what potential investors say about this.”

When could the levy come into force?

Nottingham’s scheme took some five years to introduce and get Government approval for but Sir Peter told LeicestershireLive he was confident the consultation and implementation in Leicester could be completed within a a four year mayoral term.

What do other politicians have to say?

Green Party mayoral candidate Mags Lewis had already said a workplace parking levy as the central plank of her campaign with the revenue to be used to improve bus services.

Conservative city councillor Ross Grant said: “This sounds like a very appealing idea at election time where the mayor says he will tax businesses and give everyone cheap public transport but I am very sceptical.

“Will he not just end up handing over huge sums of money to private bus companies who he cannot compel to do anything.

“This could end up with companies deciding Leicester is not where they want to base themselves because of the additional cost.”

One Labour councillor, who did not wish to be named, said: “We’ve all been putting in ideas for the manifesto for a while.

“I don’t think anyone mentioned this but then it appeared in a draft of the manifesto and everyone’s like ‘what the heck?’

“Businesses are going to hate this.”