Leicester consults on workplace parking levy proposals

A public consultation exploring proposals for a workplace parking levy (WPL) in Leicester is underway.

The workplace parking levy would run citywide and would see most employers with more than 10 spaces pay £550 for a licence per space per year

The WPL would run citywide and would see most employers with more than 10 spaces pay £550 per space per year for a licence to provide car parking for their employees.

The city council announced in August 2019 that it was considering such a levy, similar to Nottingham’s scheme and enabling congestion and traffic pollution to be cut while funding transport improvements that would encourage more active travel.

Initial consultations into a possible scheme were carried out last summer and more detailed plans for the WPL have now been published under a consultation.

Between 450 and 600 larger businesses across the city are likely to be eligible for the levy; the council noted that the high number of small businesses in Leicester means that around nine out of 10 are too small to have to pay.

The WPL could bring in around £95m in the first decade and would enable the city council to match-fund with other grants to invest up to £450m.

The funds would enable the council to plan for long-term transport investment rather than just relying on “uncertain” government funds.

It would be used to help fund areas such as the deployment of more than 400 electric tram-like buses by 2030, establishing priority for buses on key routes, enabling affordable bus fares with discounts for elderly, disabled, young and unemployed people, and investment in cycleways and the railway station.

The scheme would require government approval and could potentially start in early 2023.

Councillor Adam Clarke, Leicester deputy city mayor leading on transport and the environment, said: “A workplace parking levy has been a consideration for some time in terms of addressing the city’s present and future transport needs, and it is clear it could play a major role in financing the kind of improvements set out in the draft Leicester Transport Plan, which are vital if we are to meet both the city’s transport needs and its environmental obligations.”

He added: “The benefits of reducing traffic in the city are easy to see – anyone commuting during the school holidays can see how much difference even a 10% drop in vehicle numbers makes.

“Of course, people need to know there’s a reliable, convenient public transport system available if they are to be persuaded to leave their cars at home, and the money raised by a WPL would enable us to make huge steps forward in delivering that over the coming years.”

Clarke also said that the feedback from the initial consultation last summer had been encouraging; the council now really wants to hear from people across the city to know what they want from such a scheme, and how to make it work as best as possible.

The consultation runs until 13 March 2022. To take part, click here.

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.