Why other cities should copy Nottingham's revolutionary parking levy

Nottingham Express Transit: the workplace parking levy has helped fund extensions to the network. Image: Elliott Brown/Flickr/creative commons.

Since the 1980s, there has been a dispiriting narrative in transport in some UK cities. Bus deregulation in 1986, and the loosening of planning controls permitting new out of town shopping developments, was followed by significant growth in car ownership and use.

Since then, there has been a tendency in many cities to equate development and progress to increased car use, roads and car-based development. Cuts in government spending have been a further disincentive to promoting or funding public transport projects or other alternatives to car use.

Plenty of cities are doing good things on transport, however. The new Urban Transport Group, which brings together the urban transport authorities in London and other cities, is helping showcase what is happening on the ground and lobbying for the powers and funding to improve things.

But one city stands out as having achieved huge amount in this area. Nottingham is a medium-sized city of some 300,000 people (though the wider urban area is over 700,000).Yet it has some of the highest levels of public transport use outside London.

Nottingham City Council has developed a reputation for innovation and achievement in transport policy. It’s retained its ownership of the local bus company, Nottingham City Transport. It has also implemented a tram network – and it has implemented a levy on workplace parking spaces, the money from which goes towards transport projects in the city.

To say that this levy, more or less the first of its kind in the world, has been controversial is to understate things. It took the city council nearly 10 years to get this through, following the Transport Act 2000 promoted by John Prescott which authorised such levies in principle. Nottingham ended up having to employ lawyers to write the secondary legislation themselves.

It faced constant battles with the city’s biggest employers and the chamber of commerce, and constant lobbying from national business groups like the CBI, who tried to persuade ministers to set aside any localist tendencies they might have and veto the plans as a terrible business-bashing precedent. There were forecasts of business es deserting Nottingham for other cities nearby, tumbleweed through the streets and so forth.

Despite all this, the levy went live in 2012, after a period requiring employees to license their parking spaces. All employers with 11 or more spaces had to pay £288 per year per space; it has since risen to £375 a year, although there are various exemptions. The revenue from this scheme has contributed towards two further tram lines, the upgrade of the main railway station, support for the “Linkbus” network of non-commercial bus services, and a business support package of travel planning and parking management.

A map of the Nottingham Express Transit tram network. Click to expand. Image: NET.

The results are becoming clear to see. Public transport use, already high, has now nudged above 40 per cent of journeys in the city, a very high percentage for the UK.

The wider economic impacts are perhaps more interesting: all the predictions of loss of jobs and businesses have proved unfounded. (In fact, the genesis of this piece was a comment on these pages that Nottingham had grown when many similar cities had shrunk.) Recent statistics show jobs growth in Nottingham has been faster than other cities, while traffic congestion has fallen. The levy, with the other measures, has also helped Nottingham reach its carbon reduction target a few years early.

Although every city is different, there might be some wider lessons here. One, for the transport economist geeks, might be to stop obsessing with congestion charging. Efficient in economic theory though this might be, Nottingham looked at it and decided that it would be very costly – all those cameras and enforcement – and would not target peak hour traffic jams and single-occupancy car commuting as effectively as the levy would.

The wider lesson from this is that the politics of a levy are different, too. With congestion charging you have to get support from the whole city and potentially its hinterland; and referenda in Manchester and Edinburgh show how difficult that is. With a workplace parking levy, there is a narrower and potentially more politically winnable discussion with businesses and commuters about what a levy could pay for – things that might make journeys to work easier and cut peak hour jams and pollution.


Another lesson is that, in cash-strapped times, this levy might be something for other cities to follow. In Nottingham, it is now generating around £9m a year, a reasonable sum for a city that size. There is interest in other cities: Oxford is actively pursuing such a policy, and other places are eyeing it up, too. Cambridge recently announced a radical city deal which includes a workplace parking levy (there is of course a strong argument for giving local authorities a range of revenue raising powers, as the rest of the world does; but let’s not get carried away).

And the final lesson is that cities can, in fact, grow their economy without increased traffic and congestion, and while reducing carbon emissions. This might be something for the candidates for mayors in the city regions to take on board as they start to construct their manifestos.

Stephen Joseph is chief executive of the Campaign for Better Transport. A briefing on the Nottingham workplace parking levy is available on the website of the Campaign’s new thought leadership programme, Tracks.

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Businesses need less office and retail space than ever. So what does this mean for cities?

Boarded up shops in Quebec City. Image: Getty.

As policymakers develop scenarios for Brexit, researchers speculate about its impact on knowledge-intensive business services. There is some suggestion that higher performing cities and regions will face significant structural changes.

Financial services in particular are expected to face up to £38bn in losses, putting over 65,000 jobs at risk. London is likely to see the back of large finance firms – or at least, sizable components of them – as they seek alternatives for their office functions. Indeed, Goldman Sachs has informed its employees of impending relocation, JP Morgan has purchased office space in Dublin’s docklands, and banks are considering geographical dispersion rather concentration at a specific location.

Depending on the type of business, some high-order service firms will behave differently. After all, depreciation of sterling against the euro can be an opportunity for firms seeking to take advantage of London’s relative affordability and its highly qualified labour. Still, it is difficult to predict how knowledge-intensive sectors will behave in aggregate.

Strategies other than relocation are feasible. Faced with economic uncertainty, knowledge-intensive businesses in the UK may accelerate the current trend of reducing office space, of encouraging employees to work from a variety of locations, and of employing them on short-term contracts or project-based work. Although this type of work arrangement has been steadily rising, it is only now beginning to affect the core workforce.

In Canada – also facing uncertainty as NAFTA is up-ended – companies are digitising work processes and virtualising workspace. The benefits are threefold: shifting to flexible workspaces can reduce real-estate costs; be attractive to millennial workers who balk at sitting in an office all day; and reduces tension between contractual and permanent staff, since the distinction cannot be read off their location in an office. While in Canada these shifts are usually portrayed as positive, a mark of keeping up with the times, the same changes can also reflect a grimmer reality.  

These changes have been made possible by the rise in mobile communication technologies. Whereas physical presence in an office has historically been key to communication, coordination and team monitoring, these ends can now be achieved without real-estate. Of course, offices – now places to meet rather than places to perform the substance of consulting, writing and analysing – remain necessary. But they can be down-sized, with workers performing many tasks at home, in cafés, in co-working spaces or on the move. This shifts the cost of workspace from employer to employee, without affecting the capacity to oversee, access information, communicate and coordinate.

What does this mean for UK cities? The extent to which such structural shifts could be beneficial or detrimental is dependent upon the ability of local governments to manage the situation.


This entails understanding the changes companies are making and thinking through their consequences: it is still assumed, by planners and in many urban bylaws and regulations, that buildings have specific uses, that economic activity occurs in specific neighbourhoods and clusters, and that this can be understood and regulated. But as increasing numbers of workers perform their economic activities across the city and along its transport networks, new concepts are needed to understand how the economy permeates cities, how ubiquitous economic activity can be coordinated with other city functions, such as housing, public space, transport, entertainment, and culture; and, crucially, how it can translate into revenue for local governments, who by-and-large rely on property taxes.

It’s worth noting that changes in the role of real-estate are also endemic in the retail sector, as shopping shifts on-line, and as many physical stores downsize or close. While top flight office and retail space may remain attractive as a symbolic façade, the ensuing surplus of Class B (older, less well located) facilities may kill off town-centres.

On the other hand, it could provide new settings within which artists and creators, evicted from their decaying nineteenth century industrial spaces (now transformed into expensive lofts), can engage in their imaginative and innovative pursuits. Other types of creative and knowledge work can also be encouraged to use this space collectively to counter isolation and precarity as they move from project to project.

Planners and policymakers should take stock of these changes – not merely reacting to them as they arise, but rethinking the assumptions that govern how they believe economic activity interacts with, and shapes, cities. Brexit and other fomenters of economic uncertainty exacerbate these trends, which reduce fixed costs for employers, but which also shift costs and uncertainty on to employees and cities.

But those who manage and study cities need to think through what these changes will mean for urban spaces. As the display, coordination and supervision functions enabled by real-estate – and, by extension, by city neighbourhoods – Increasingly transfer on-line, it’s worth asking: what roles do fixed locations now play in the knowledge economy?

Filipa Pajević is a PhD student at the School of Urban Planning, McGill University, researching the spatial underpinnings of mobile knowledge. She tweets as @filipouris. Richard Shearmur is currently director of the School, and has published extensively on the geography of innovation and on location in the urban economy.