Fears staff car parking charges could 'cripple' Cardiff businesses

A business fears proposals to charge Cardiff employers thousands of pounds for staff parking could "cripple" employers in the city.

Larger firms could have to pay Cardiff Council £750 for each staff parking space, under plans due to be consulted on.

The AA said a so-called workplace parking levy could be viewed as a tax on workers, while others fear it could drive firms out of the city.

But some welcomed the extra money it would generate, which the council said would be used on public transport.

It said the money raised by the scheme would be spent on city transport projects like buses and cycle lanes, with the proposals aimed at encouraging workers to walk, cycle or use public transport.

Julie Keeler, 60, has run an engineering firm in the capital for 35 years, but believes the plan could put additional pressure on businesses.

"It's crippling them - I think it will force them out," she said.

Keeler said she had decided to close her firm and retire because of the costs being piled on to businesses.

"We go all over. We've had to lay off 25 people this year because of petrol, and [parking] zones - it's not worth taking the job.

"You can't put your prices up in this day and age - we've run it for 35 years, there's no point".

Keeler believes too much money has already been spent on cycle lanes in Cardiff.

"They should spend it on something else, I think we're desperate for a lot more than cycle lanes," she said.

However, others disagree.

Luke Moore, 33, commutes into Cardiff city centre every morning by train, and would like to see more money put into public transport.

He refuses to park in Cardiff for work because of the "extortionate" prices - recently paying £20 for two hours.

"I refuse to park in Cardiff because it's so expensive, I get the train in from outside," he said.

Even if he had a staff parking space, Moore said he would continue to use the train, and hopes the council uses any extra money to improve public transport.

"It's easier to commute by train than it is to drive in Cardiff, especially on event days because you can't get out," he said.

Living Streets, a charity that promotes walking, said Cardiff was one of the most congested cities in the UK.

Spokesperson Ruth Billingham said a levy could lead to a "greener, more friendly Cardiff".

"Busy streets, air pollution and a lack of joined-up routes from train stations and bus stops all put people off walking and wheeling more.

"At Living Streets, we believe a workplace parking levy could be part of the solution in Cardiff," she said.

A workplace parking levy (WPL) is an annual charge paid by some businesses to a council based on its number of employee parking spaces.

Cardiff council said it would prefer to introduce a parking space charge over a congestion charge, but the scheme is in its early stages.

It is not known which businesses may be affected or how much they would be charged per space.

The council will launch a public consultation for residents and businesses to share their views this summer.

The council said it expected the levy to raise somewhere in the region of £10m per year, depending on discounts and exemptions, with an estimated set-up cost of between £3m and £5m.

A WPL is currently in operation in Nottingham, where the cost per workplace parking space is £592 per year for employers who provide 11 or more liable places, but Bristol and Oxford have outlined plans to introduce it.

Cardiff Council said the £750 figure was for "the purposes of analysis" and was "subject to change".

Engineer Paul Thornton wonders whether a parking levy may actually force larger employers out of the city, impacting the economy.

"The cost to the employers - it's a bit of a stealth tax on businesses, what does that mean long term? Does that mean they'll move out of Cardiff, it could be counterproductive," he said.

Staff parking was "essential", he said, adding it was "not always easy to catch public services".

"It's an additional cost, when they're bringing a benefit to the city.

"The employees who work in the city obviously spend their money on local services," he said.

Luke Bosdet from AA said a parking levy could be seen as "a tax on workers".

"City centre workers are some of the most regular and best consumers and customers feeding money into shops and services, at a time when town and city centres are seeing lower footfall and spending," he said.

"Undermining that source of income, because the workers are having to fork out more of their money on travel and parking means they'll have less to spend in shops - it's not very clever."

One major city centre employer, Hodge Bank, said it would follow the parking space consultation "with interest".

Charlie Ellaway, chief people officer said the bank offered season ticket loans for Cardiff Bus and Transport for Wales, along with access to the government's Cycle to Work scheme.

"Encouraging more people to make use of public transport is undoubtedly a positive step towards reducing carbon emissions so, more investment into better transport links is certainly needed," she said.

"The consultation process will make it clear whether parking space charges are the way to do that."

Speaking earlier this week, Dan De'Ath, the council's cabinet member for environment, said its current funding levels were "simply insufficient".

He described the scheme as "our chance to really give people the bus service they deserve" and build the type of transport system that "people on the continent take for granted and have had for years".

The WPL could play a large role in "unlocking the economic potential of Cardiff" and "unlocking a transport system that is fair", he said.