Could more cities charge employers for parking spaces to help fund local infrastructure?

Look at all that lovely, empty space. Image: Getty.

As government budget cuts continue to bite and competition for funding increases, it’s becoming harder for UK cities to secure the money needed to build or maintain good quality infrastructure. For example, Sheffield’s Supertram network faces a £230m funding gap, and could close unless transport executives can raise the funds to renew the network.

But if central government won’t provide funding, there are other ways for city authorities such as Sheffield to generate income for much needed transport infrastructure. One idea is a workplace parking levy, which is a charge placed on all workplace car parking spaces within a specific boundary.

The premise is simple: each year, the business who owns that space must pay the local authority a set amount of money. Businesses may chose to pay this themselves, or pass the charge on to their employees through car parking fees. The money collected from the levy is used to help fund transport projects within the local area, while also encouraging commuters to shift away from cars and onto other modes of transport.

Pioneer cities

After being adopted in Australian and Canadian cities, the levy was first introduced to the UK in 2012 in the city of Nottingham. During its first year, the charge raised £7m and has continued to raise funds since. The money has allowed Nottingham to keep up its contributions to the Private Finance Initiative (PFI) that was used to pay for an expansion of the city’s tram network, along with other important transport improvements.

Currently, the cost per space stands at £402 per year, although there are some notable exceptions to the charge: businesses with fewer than 11 spaces don’t have to pay, and there’s no charge for emergency services and disabled parking.

Other cities have begun to follow Nottingham’s path. Both Oxford and Cambridge have made steps towards introducing their own versions of the levy to fund transport improvements.

Manchester considered the levy as a tool to help improve the city’s air quality, although a proposal was recently rejected by the city council on the basis that the levy would need to be applied across the whole of Greater Manchester to work. Sheffield made a small reference to the potential use of a levy in its recent draft transport vision, although it’s not clear how well developed these plans are.

Together with colleagues from the universities of Nottingham and Southampton, I’ve undertaken research which included interviewing a range of key people from Nottingham’s city council, the local tram operator, the Chamber of Commerce, as well as politicians and managing directors of several Nottingham-based businesses, to find out what made Nottingham’s workplace parking levy a success.


Recipe for success

For one thing, Nottingham is a politically stable city. Labour are the dominant party within the local council and have been since 1991, so councillors are less concerned about suffering electoral losses in response to a poorly received policy, and more confident about implementing more radical ideas.

Nottingham’s boundary is also tightly drawn, which meant that deciding where to apply the charge was more straightforward. Manchester’s experience shows that larger cities may have more difficulty in determining who is subject to the charge.

Initially, some businesses saw the charge as a “tax” on them and opposed the policy; media reports at the time warned of businesses leaving the city and moving to nearby economic centres, such as Derby. But there is no evidence to suggest that these worries have materialised in the longer term.

Identifying a piece of infrastructure, such as a tram system, that will be built using funds from the levy also appeared to be an important argument to “sell” the charge to sceptics. So although there was opposition to the workplace parking levy, there was also a lot of support for the tram expansion and the benefits this could bring.

An opportunity to invest

The workplace parking levy offers cities an opportunity to collect and invest large amounts of money in their own infrastructure; or to leverage even greater amounts of money from other sources, which might otherwise be unfeasible.

For Nottingham, a large part of its success is based on the fact that it preemptively used the money raised through the workplace parking levy to leverage significant finance from the UK government, through the PFI deal. To secure these funds to pay for the tram expansion, Nottingham agreed to commit to repaying 35 per cent of the value of the PFI (estimated at £187m). The council has used the levy on an ongoing basis to help it meet these costs.

The experience of Nottingham and other pioneer cities shows that while the workplace parking levy is based on a rather simple premise, introducing one is not a simple process. There will undoubtedly be opposition; the local authority may need to work hard to emphasise the benefits, in order to adopt the policy. And of course, every city and town is different, so there’s no single path to success.

But as local authorities continue tightening their belts in response to ever more challenging budgets, it may not be long before we see more places taking steps to introduce their own workplace parking levy.

The Conversation

Stephen Parkes, Research Associate, Sheffield Hallam University.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 
 
 
 

The Fire Brigades Union’s statement on Theresa May’s resignation is completely damning

Grenfell Tower. Image: Getty.

Just after 10 this morning, Theresa May announced that she would resign as Britain’s prime minister on 7 June. A mere half an hour later, a statement from Royal Institute of British Architects president Ben Derbyshire arrived in my inbox with a ping:

“The news that Theresa May will step down as Prime Minister leaves the country in limbo while the clock ticks down to the latest deadline of 31 October. While much is uncertain, one thing remains clear – a no deal is no option for architecture or the wider construction sector. Whoever becomes the next Prime Minister must focus on taking the country forward with policies beyond Brexit that tackle the major challenges facing the country such as the housing crisis and climate change emergency.”

I was a bit baffled by this – why would the architecture profession try to get its thoughts into a political story? But then Merlin Fulcher of Architects Journal put me right:

Well you know construction is a larger contributor to GDP than financial services, and most of the work UK architects do is for export, and at least half of the largest practice (Foster + Partners) are EU, so there's a lot at stake

— Merlin Fulcher (@merlinfulcher) May 24, 2019

So, the thoughts of the RIBA president are an entirely legitimate thing to send to any construction sector-adjacent journalists who might be writing about today’s big news, and frankly I felt a little silly.

Someone else who should be feeling more than a little silly, though, is Theresa May herself. When listing her government’s achievements, such as they were, she included, setting up “the independent public inquiry into the tragedy at Grenfell Tower” – a fire in a West London public housing block in June 2017 – “to search for the truth, so nothing like it can ever happen again, and so the people who lost their lives that night are never forgotten”.

Matt Wrack, general secretary of the Fire Brigades Union, is having precisely none of this. Here’s his statement:

“Many of the underlying issues at Grenfell were due to unsafe conditions that had been allowed to fester under Tory governments and a council for which Theresa May bears ultimate responsibility. The inquiry she launched has kicked scrutiny of corporate and government interests into the long-grass, denying families and survivors justice, while allowing business as usual to continue for the wealthy. For the outgoing Prime Minister to suggest that her awful response to Grenfell is a proud part of her legacy is, frankly, disgraceful.”

A total of 72 people died in the Grenfell fire. At time of writing, nobody has been prosecuted.

Jonn Elledge is editor of CityMetric and the assistant editor of the New Statesman. He is on Twitter as @jonnelledge and on Facebook as JonnElledgeWrites.

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