Drivers could be hit with a new tax on workplace parking spaces under plans supported by Andy Burnham.
Analysis suggests almost a dozen cash-strapped councils have already explored introducing the charge for commuters who drive to work, amid concerns that more town halls could follow suit as they search for new sources of income.
The Workplace Parking Levy (WPL) allows local authorities to charge businesses for each parking space they make available to employees.
The proposals have triggered fresh claims of a Labour “war on motorists”, with opponents arguing the levy is a “cash grab” that employers are likely to pass on to staff — effectively turning it into a tax on commuting to work.
The row intensified after Labour-run Cardiff Council said last week that it planned to charge city employers up to £750 a year for every parking space provided for their workers.
Green Party-led Bristol City Council has also drawn up proposals that could see companies charged as much as £1,250 per space each year. Liberal Democrat-run Oxfordshire County Council is seeking to introduce the levy countywide from 2028, with charges of up to £600 per space.
Critics say WPL schemes amount to a “double tax” because businesses already pay rates, warning that extra costs could “cripple” firms while piling further pressure on motorists.
Analysis suggests almost a dozen financially stretched councils have considered workplace parking levies for people who drive to work and park there.
In comments unearthed by the Mail, when he was mayor of Manchester, Mr Burnham said workplace parking levies should be ‘on the agenda as we move forward’
Richard Holden, the Tories’ shadow transport secretary, said the parking levy ‘lands squarely on people who go to work’
There are growing fears more WPLs will now be created across England and Wales because, while they have to be signed off by ministers, Mr Burnham has previously expressed support for them.
In comments unearthed by the Mail, when he was mayor of Manchester, Mr Burnham said: ‘I feel that we need to look at issues like a workplace parking levy – I think that has to be on the agenda as we move forward.’
In the comments, from 2023, he added that ‘tougher measures’ such as the tax were reasonable if people were choosing to shun public transport and drive instead.
The levy, aimed at getting more people to walk and travel by bus or train, could raise millions of pounds for cash-strapped councils. Cardiff’s plans are projected to raise as much as £10million while Bristol’s could generate more than £40million.
Critics point out the cost is usually passed onto workers in lower pay and perks or as a separate charge.
The only WPL that currently exists is in Labour-run Nottingham City Council, which charges firms in the city up to £600 per parking space they provide for each member of staff and has generated more than £90million for the local authority.
But since Cardiff signed off its plans last week, it has emerged plans for WPLs have been drawn up in Bristol, Leeds, Oxford, Birmingham and in the London boroughs of Hounslow, Brent and Camden.
They must be signed off by the Transport Secretary, Heidi Alexander, who it is feared could be encouraged to green-light them by Mr Burnham given his previous backing.
Richard Holden MP, shadow transport secretary, said: ‘Labour councils have found their new stealth tax, and it lands squarely on people who go to work.
‘This is a blatant tax on work, and now being rolled out across Bristol, Oxford, Leeds and beyond, with the Labour Transport Secretary holding the veto and refusing to use it.
‘The Conservatives will always stand up for drivers. Andy Burnham must rule out the workplace parking tax.’
Howard Cox, founder of the FairFuelUK campaign, said: ‘This is an outright attack on drivers.
‘Drivers, already burdened by fuel duty, road tax and insurance, are targeted once more, ostensibly under an alleged green policy, but really for simply going to work.’
While councils were handed powers to introduce WPLs by the last Labour government, they have started looking at them as revenue raisers as budgets become increasingly squeezed.
Under most plans drawn up, firms must have at least 11 parking spaces or more for staff on their premises to qualify for the levy.
However, in Nottingham for instance, employers with ten or fewer spaces must still register with the town hall, burdening them with more red tape.
If councils introduce the schemes, they are supposed to use income generated on investing in public transport schemes like park and rides or cycling lanes.
Luke Bosdet, from the AA, said WPLs were a ‘double tax’, adding: ‘WPL is completely unjustifiable except if you’re a council looking to grab cash from businesses and workers.
‘Cardiff City Council reckons it can make £10 million a year from WPL. If even half of that is passed on to the workers, that is £5 million a year sucked out of potential consumer spending in the city.
‘With town and city centres struggling with consumer footfall, how stupid is targeting the most regular customers with extra tax?’
A Department for Transport spokesman said ministers have ‘always been clear that any revenue raised by schemes like this must be used to deliver local transport policies.’
