A new parking levy has been introduced which is going to help to fund improvements that are being made to public transport. One of these improvements is going to be the introduction of new lines for the trams in Nottingham.
The parking levy did not raise as much money as Nottingham council expected in its first year and they have decided to increase the fees in order to raise the amount of money they expected. Businesses that have over 10 parking spaces currently have to pay around £290, but within the next three years this is going to be increased to around £380.
The council initially expected that around £10 million would be raised by the scheme, but unfortunately they have been £2 million short. Fewer parking spaces have been charged than expected and this is why the councillors decided to raise the cost of the parking for the fewer people who are a part of the scheme.
The officials have announced that with the changes to the scheme, they expect to reach their target funding goal by 2015. It is estimated that so far around 3000 employers have become involved with the scheme which has led to the registration of over 45,000 parking spaces. The councillors said that around 30,000 of these are fully chargeable under the scheme with others qualifying for some form of discount.
The levy is going to continue for 25 years and the council expect to generate an average of £14 million per year over this period. Many businesses have complained about the levy stating that it is an unnecessary charge in a time when businesses being squeezed by a tough economy. The local representative from the Chamber of Commerce has commented, “Businesses in the city centre, will benefit from the public transport but don’t have parking spaces and so there are not really paying for the improvements.”