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SNP confirm new workplace parking tax has no upper charge limit

A new charge on parking at work place could “frighten the life out of businesses” as the SNP confirmed there will be no upper charge limit, it was warned.

Scottish Government transport minister Jenny Gilruth revealed it will be left up to councils to decide how much they want to take from firms under the proposed laws.

The legislation – which could be introduced as early as next month – would aim to cut the numbers of drivers on roads and clean up the environment.

Finance Secretary Kate Forbes confirmed in her December Budget that the government would be pushing forward with the parking levy after it was initially approved in a 2019 vote.

But rivals fear the car bill could end up hitting workers if businesses struggle to cope with the costs and pass them onto staff.

Angus council leader David Fairweather was among those who previously ruled out using the levy for authority staff and teachers.

Tory transport spokesperson Graham Simpson said he was “astonished” the Scottish Government refuses to set an upper limit on what councils can charge for a license.

‘Scaremongering’

Ms Gilruth dismissed his concerns as “scaremongering” and assured MSPs on a Holyrood committee that councillors were best placed to make the decisions.

She said: “This is a matter for local authorities to decide upon. If I was to come and set a top limit on this I would be accused of interfering with local democratic principles.

“I think it’s important that local authorities are trusted to look at their local circumstances. I would expect them to set an appropriate cost accordingly.

“I would be concerned that Mr Simpson is potentially scaremongering on this issue.”

Fears for businesses

Mr Simpson had said: “I’m quite astonished by that.

“The minister and her official have just confirmed that there is no limit whatsoever on what councils can charge for a license. That will frighten the life out of businesses across Scotland.”

Concerns were raised that the new levy could negatively impact Scots in remote areas with poor public transport links who are forced to drive to work.

SNP’s transport minister Jenny Gilruth.

Ms Gilruth said government ministers hope the charge could “drive behavioural changes” with workers encouraged to use trains and buses where possible.

It’s previously been claimed that the proposed environmental laws could “penalise” workers in the north-east who commute from rural towns and villages.

A pilot scheme for the workplace levy was launched in Nottingham in 2012.

But Mr Simpson claimed that over half of the companies involved in the trial passed on the cost to employees.