Nottingham's proposal for the first workplace parking licensing scheme has been approved by the Secretary of State for Transport.
This scheme will charge £253 per parking space for a year and is expected to raise an average of £14m per year over a 23 year period. There will be a 100% discount for employers providing 10 or fewer spaces; this is estimated to be at least 85% of employers.
The revenue raised will be used to:
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help pay for the extensions to the tram network (NET Phase Two)[1] and;
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the redevelopment and modernisation of the railway station (the Hub project) and maintaining the Link bus network which is currently subsidised by Nottingham City Council[2].
The WPL is expected to reduce congestion through encouraging a modal shift to public transport.
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Congestion in Nottingham currently costs the local economy £160 million in lost time and revenue each year. With the predicted growth in population in and around Nottingham, this will only get worse.
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The WPL and its benefits will help control the problems associated with traffic congestion.
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The direct impact of WPL on liable employers and their staff would likely result in a positive but modest impact on congestion. However, the improvements in public transport such as NET Phase Two (which would be realised due to WPL income) should have a significant impact on congestion.
Nottingham Council's licensing scheme order will come into force in April 2011 and the collection of charges will not commence until April 2012.
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The Government has agreed to increase its share of the funding required for NET Phase Two (by increasing the Private Finance Initiative (PFI) credit by £13m) to compensate for both the loss of revenue from the first two years of WPL caused by delaying charging until 1 April 2012 and the expected interest earned on that money.
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The delayed start of WPL charging therefore has no adverse impact on the local contribution required for schemes funded via WPL as long as NET Phase Two reaches financial close and WPL is implemented at the originally proposed year 3 charge with effect from 1 April 2012.
(-) If WPL is not introduced...
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Employers will have less incentive to minimise their parking provision and encourage more sustainable commuter travel by their staff
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Further investment in public transport would be unaffordable and some current services would have to cease
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No other funding sources are available to fully meet the 25% needed for NET Phase Two from 2006 to 2021
(+) Benefits of WPL if it is introduced...
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The WPL package will create an increase in public transport capacity in the Greater Nottingham area contributing to a forecast growth in public transport journeys into the city centre of over 20% from 2006 to 2021
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Together with the tram, train and bus improvements, the levy is predicted to reduce traffic growth from 15% to only 8%
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The number of public transport journeys in and out of the city centre will increase by 20% and the demand for Park & Ride will increase by 45%
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The transport improvements will take 2.5 million cars off our roads by 2015
References
[1] As a result of the success of NET Line One, the government has confirmed that it is will to fund up to 75% of the cost of NET Phase Two. The remaining 25% will need to be found locally by the City Council and WPL income would be a significant contribution towards this local funding requirement.
[2] Funding a package of public transport improvements (My Nottingham website) http://www.nottinghamcity.gov.uk/index.aspx?articleid=2581?
