Nottingham city council says it will not raise as much money as it had hoped from the workplace parking levy in its first year.
The charge means businesses with more than 10 parking spaces will have to pay £288 a year for each space from Sunday.
The authority says it will pay for better public transport including new tram routes and will reduce congestion.
More top news
Cloudy with some rain, becoming drier and brighter later.
Rather cloudy with patchy rain for a time.
Owner Carmela Barbaro was hauled out of her van seconds before it went up in flames as a result of an electrical fault.