Workplace parking tax slammed

The London Chamber of Commerce is leading a campaign against a proposed levy on workplace parking. It has been estimated that such a tax could cost firms in the capital an extra £470M a year, perhaps spelling the end for some, campaigners say.

The Government intends to empower the new Mayor of London to tax parking at the rate of £3000 in the central area and £1000 in outer areas.

The aim is to cut congestion, in addition of course to raising money. A complementary proposal - imposing 'entry charges' on vehicles coming into the central area - has also been outlined.

The Transport Bill, published last week, would extend the same powers to local authorities around the country. The decision about whether or not to implement such charges would be made at local level.

In a statement that perhaps reveals some of his strategic thinking, Deputy Prime Minister John Prescott has said that he would not expect to see any decisions made to implement charges for four or five years.

Elliott Chase