New guidance that could see commuters pay to park at work is now available for local authorities in Scotland.  

The guidance will help councils make use of their new discretionary powers to implement Workplace Parking Licensing schemes

Intended to “empower local authorities to tackle climate change”, the guidance from Transport Scotland will help councils make use of their new discretionary powers to implement so-called Workplace Parking Licensing (WPL) schemes. These would see employers pay an annual levy to the council for every parking space they provide for employees – with the charges potentially then being passed onto employees. 

Although Nottingham remains the only place in the UK to have introduced a workplace parking levy to date – where it’s been used to help fund extensions to the tram system and train station redevelopment – such a system is big on the Scottish Government’s agenda.     

The Transport (Scotland) Act 2019 introduced a discretionary power for local authorities to implement WPL schemes and Transport Scotland ran a consultation last year on regulations and guidance.

The regulations came into force on 4 March 2022 and allow councils to decide on an individual level if they wish to implement a WPL, following consultation and impact assessments on how it should be designed and operate in their area and supported by the new guidance.

Revenues raised from such schemes would be used to help fulfil the objectives set out in their local transport strategy.  

The Scottish Government said the regulations and guidance on implementing a WPL scheme support the vision and priorities set out in the National Transport Strategy (NTS2) to establish a fairer, greener transport system and progresses Scotland’s commitment to reach net zero by 2045.  

Minister for Transport Jenny Gilruth said: “The workplace parking levy is a key tool which empowers local councils in encouraging people out of their cars and onto more sustainable modes of transport. This is vitally important if we are to reach a 20% reduction in car kilometres by 2030.  

“The revenue generated by these schemes must support policies in local transport strategies; which allows local authorities to raise finance and invest it according to local need. The levy can also support improvements in public or active transport, making it more attractive and therefore encouraging individuals to leave their cars at home.”  

But concerns have also been raised about the impact of such schemes on businesses and drivers, especially following the pandemic and during the current cost-of-living crisis.  

In Nottingham, the current cost per workplace parking place per year is £458 for employers that provide 11 or more liable places, and this raises in line with inflation on 1 April ever year.  

Speaking earlier this year, the Scottish Chambers of Commerce said Scotland’s businesses had consistently opposed the introduction of the workplace parking levy due to the additional financial burden it places on businesses and their employees.   

Chief executive Dr Liz Cameron continued: “Many businesses are concerned that local authorities, whose budgets are already stretched, may now seek to implement this levy as a revenue stream rather than for purely environmental reasons.”  

Other organisations have said the focus should be on ways to cut car usage and congestion, including through better public transport. Earlier this year, the Scottish Conservatives made a last-ditch bid to halt the “punishing” plans, which it said were a “tax on drivers” that would fail to produce any environmental impact.  

Shadow Transport Minister Graham Simpson said in February: “As long as the SNP continue to fail to provide Scotland with a public transport system that is affordable and fit-for-purpose, punitive measures like this will have no environmental benefit.”