Workplace Parking Levy: Cardiff Council considers new parking charge for drivers and businesses

  • Wales
Parking levy for businesses to be considered in Cardiff

  • Report by Megan Boot.

Businesses who provide parking spaces for their staff could be charged under a proposal being considered by Cardiff Council.

Cabinet members are meeting to discuss a new report into the development of a business case for a Workplace Parking Levy in the capital, with the aim of cutting congestion and improving air quality.

Money raised from the scheme would be spent on public transport projects.

While the idea was first proposed in 2020, the council has been developing ideas for a Road User Payment Scheme since April 2023.

The council says it will decide between a 'Road User Payment' (congestion charge) or the Workplace Parking Levy.

Under the latter, businesses could either pay the cost themselves, or pass it on to employees who make use of spaces.

Nottingham is currently the only city to operate a similar scheme, although others have considered it.

Employers that provide 11 or more spaces at workplaces are charged £570 per space in 2025-26.

Smaller employees are discounted by 100%, along with spaces for disabled people and NHS premises.

The scheme, which has been in operation since 2012, helped fund an extension of Nottingham's tram network.

Nottingham's Workplace Parking Levy provided funds for Phase Two of the city's tram network

Cardiff expects to make its decision in December 2026, with implementation by 2028.

Ahead of this, it says it wants to bring in the schemes that would be funded by the payment.

These could include:

  • The introduction on key routes of £1 bus fares.

  • Enhancements to the bus network to provide better and expanded bus services.

  • The delivery of the Phase 1 metro from Central Station to Pierhead Station in the Bay

  • Coryton and City Line frequency enhancements.

  • Improvements to regional commuting infrastructure.

Cllr Dan De’Ath, Cabinet Member for Climate Change, Strategic Planning and Transport, said: “Road user charging can take many forms, so we need to make sure the option chosen is the right one for Cardiff. The city faces growing challenges, which we are addressing through a variety of measures.

"We need people to be less reliant on private cars to reduce congestion, further improve air quality, and invest in public transport. To achieve this, we must provide credible alternatives, and we are committed to making this happen."

"Increased funding is needed from a Road User Payment Scheme to significantly improve travel choices by investing in transport schemes that encourage more walking, cycling and travel by public transport."

“The business case work is a three-stage process to develop the options to its conclusion, and as such we cannot predetermine any decision until the final business case is completed and approved by Cabinet. However, we are keen to keep businesses and residents updated as the process continues".