Tax Update (August 2010)

Proposed Workplace Tax Causes Controversy

Plans to introduce new levies for parking at work have created a storm of criticism amongst some business leaders.

Various councils across the country are considering charging employers £250 a year for every parking space, with the figure potentially rising to £350 after a certain time period.

More than 10 million workers drive to work in the UK every day – and for those who live in rural areas, catching public transport to work is not an option.

Initially, the new fees, which critics are calling 'a war on motorists,' were seen as a way to tackle congestion, but people are also seeing them as a source of extra cash.

David Frost, the director-general of the British Chambers of Commerce said, "It is the wrong tax in the wrong place at the wrong time.

"This is the worst possible time for it to be introduced as we are trying to get businesses to grow all over the country,” he added.

Now, the government is stepping forward to have their say, with Transport Secretary Philip Hammond planning new rules which would make it harder for councils to impose the stealth tax on motorists and businesses without full consultation.