Company car park tax sparks row

Companies in a Midlands city that provide car parking for staff are to be charged £185 per bay per year, rising to £350 in 2014 for firms with 11 bays or more.

The scheme being piloted by Nottingham City Council may also be adopted by other councils throughout the UK, and is expected to be endorsed by the Government.

It has also led 135 companies to threaten that they will either leave or partially leave the town, or shelve any plans to expand.

Nottingham is home to many large businesses, including retailer Boots and credit-rating agency Experian.

It has been estimated that this Workplace Parking Levy might cost Nottingham firms £11.3 million a year, and UK firms a total of £3.4 billion a year if rolled out nationwide.

Nottingham says that the money will be used to expand the city's tram network, proposals for which are expected to be given the go-ahead by transport minister Sadiq Khan.

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