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The new Workplace Parking Levy (WPL) would see employers forced to pay to provide car parking for their employees. Fees would be charged at £550 per space for any business with at least 10 employees under the new driving law.
Under a WPL, employers are within their right to introduce a system to pass on some of the costs to staff.
Plans for a WPL scheme in the city were first outlined as part of the Council’s Draft Transport Plan 2021-2036 report.
Leicester City Council warns the scheme would require Government approval.
If given the green light, a WPL scheme could start as soon as early 2023.
The city council said it would work closely with local employers “well in advance” to prepare them for its introduction.
In total, between 450 and 600 businesses are likely to be eligible under the scheme.
However, around nine out of 10 businesses in the city are expected to be too small to be impacted by the fees.
Leicester deputy city mayor leading on transport and the environment, Councillor Adam Clarke, said the new scheme would “reduce traffic” in the city.
He said: “A Workplace Parking Levy has been a consideration for some time in terms of addressing the city’s present and future transport needs.
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“It is clear it could play a major role in financing the kind of improvements set out in the draft Leicester Transport Plan, which are vital if we are to meet both the city’s transport needs and its environmental obligations.
“Nottingham City Council has valuable experience of a WPL over the last 10 years or so, which is why we’ve been working closely with them in designing a scheme for our own city.
“The benefits of reducing traffic in the city are easy to see – anyone commuting during the school holidays can see how much difference even a 10 percent drop in vehicle numbers makes.
“Of course, people need to know there’s a reliable, convenient public transport system available if they are to be persuaded to leave their cars at home, and the money raised by a WPL would enable us to make huge steps forward in delivering that over the coming years.
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