Alphabet is advising businesses not to overlook the value of free workplace parking, which could amount to a tax-free financial boost averaging £1,500 per year according to its latest research.

Parking at work offers employees annual savings of £4,000 in London, and £1,000 in other cities.

Compared to using a private car park, the company said the UK’s four million parking spaces offered a combined annual saving of between £5bn and £7bn for employees. That’s naturally weighted towards London, where the saving is £4,000 – four times the price of other cities.

But, it added, this is under pressure as local planning laws start to restrict spaces per employee for new builds. Alphabet has launched a white paper to help businesses overcome the shortage of spaces, including pay-to-park schemes, salary sacrifice arrangements and Workplace Charging Levies such as those in Nottingham.

It has also pointed out how the connected car, which is enabling easier car sharing, means fewer vehicles will be required at workplaces.

Alphabet’s Head of Marketing and Business Development, Mark Gibson, said: “Many people and businesses will be surprised at how much their favourite space in the office car park is really worth. Workplace parking tends to be a very underrated asset. It’s good for morale, good for productivity and good for staff safety. We see it as an asset that employers should want to maximise.”