Nottingham is set to become the first UK city to introduce a Workplace Parking Levy (WPL) to fund a range of ambitious transport improvements.

Councillors agreed to authorise the innovative move yesterday (May 12) after considering the draft legal Order and Business Case for the WPL scheme at a Full Council meeting. They approved the scheme and agreed for the Order containing the legal framework to be submitted to the Secretary of State for Transport for approval.

Government approval of the scheme would see millions of pounds being invested each year in a range of public transport measures, including funding the local financial contribution to extend the NET tram system to serve Chilwell and Beeston via the QMC and Clifton via Wilford. The Government has already agreed to provide 75% of the funding.

Yesterday’s decision follows a 12 week public and business consultation and five day Public Examination overseen by an independent inspector, and a thorough development of the business case taking feedback into account.

Councillor Jane Urquhart, Portfolio Holder for Transport and Area Working, said:

Nottingham has a track record of transport success and innovation, including the best tramway in the country. We want to expand the tram system, improve our train station and provide more and better buses. We believe the Workplace Parking Levy is a fair way of paying for these improvements, to provide good quality public transport options and clearer roads for those commuters who need their cars.

"We are prepared to make bold decisions like this that will benefit Nottingham well into the future. The WPL’s investment in public transport will build on our already successful transport network and make it a viable option for even more people. It will help to keep the city moving and give it a competitive edge as a major centre of business and commerce."

It is expected that the WPL scheme would start in April 2010. In the first year of the scheme £5.6 million would be raised by the WPL, rising to £11.3 million per annum in 2015. As well as the NET extension, the WPL could also fund:

• More Link bus services and the funding needed to continue to run the existing popular Link buses which serve areas not covered by commercial public transport operators  
• Transform Nottingham Station into a ‘Hub’ with improved connections to buses and trams and expanded passenger facilities – turning it into one of the top European transport interchanges
• Increased support and advice to businesses for travel planning and parking management.

Most businesses and commuters in Nottingham will not pay the Levy. Smaller businesses, with 10 or fewer liable parking spaces, and the 125,000 people who already help tackle congestion every day by walking, cycling or using public transport will not have to pay – nor will shoppers, tourists, disabled drivers and people parking at fire, police and health premises.

Only around 500 large employers would be charged an annual fee for each of the parking spaces it provides for its staff. The cost of each space would initially be £185 in April 2010, rising with increments and inflation in the early years until 2015, while public transport improvements are rolled out. In future years the fee would increase with inflation only.

It is for businesses themselves to decide whether to pass on the charge to commuters and encourage them to think about using public transport instead.

Next steps for WPL:

• The next stage of the process is for the Council to submit the legal Order to the Secretary of State for Transport, as the WPL scheme cannot start unless and until the Order is confirmed by the Secretary of State. It is anticipated that the application for confirmation would be submitted in the summer to coincide with when it is expected that the NET Phase Two Public Inquiry Inspector will report his findings to the same Secretary of State.

• 68% (652) of the City of Nottingham residents who took part in the WPL consultation supported the proposals, which would fund more and improved public transport services that provide a wider range of options for commuting, shopping and other leisure activities and improve opportunities for people accessing education and healthcare.

• As part of the public and business consultation there was a five day Public Examination led by an independent examiner, who reported: "Being a tax which is simple to administer and difficult to evade, the WPL scheme clearly has the potential to deliver public transport benefits to Nottingham." He went on to state: "It would probably have a very small direct effect upon growth in traffic congestion, and a somewhat larger indirect effect through the support of public transport improvements."

For more information about WPL please click here