Parking tax move to raise transport cash

Date published: 09/11/2007

Rochdale Council is being encouraged by ministers to slap a car parking tax on businesses in the borough.

The controversial plan unveiled by Transport Minister Rosie Winterton would mean town and county halls would no longer need the approval of Transport Secretary Ruth Kelly to impose the charges as an alternative to pay-as-you-drive road pricing.

The scheme was part of a package of measures in the Local Transport Bill, Ms Winterton revealed that more cash would be available for councils to tackle travel problems if they considered imposing the financial penalties on companies.

She insisted that local authorities were not being bribed into accepting unpopular schemes but they had to show "demand management" to secure cash from the Transport Innovation Fund.

Ms Winterton said: "Workplace parking measures can be part of demand management. If that is what local authorities feel is right for their area, then obviously we look at what they are proposing.".

Cash raised from schemes such as workplace parking charges or congestion charging would have to be pumped straight back into improving transport in the area where charges are imposed.

Extra powers will also be granted to councils to impose quality contracts on bus operators, setting strict limits on fares and punctuality.

The bill did not include powers for a national road pricing scheme. The Government has so far received only two proposals for congestion charging — from Manchester and Cambridge — despite giving taxpayers’ cash to ten areas to come up with projects.