Proposals and benefits

Our proposed workplace parking levy

A workplace parking levy (WPL) is a charge levied on businesses for each parking space they offer to staff. WPLs are permitted by government legislation.

In Leeds city centre, our proposed model would see businesses pay a charge per parking space in the region of £2,080 per year / £40 per week, which is in line with a city centre parking season ticket. 

This is estimated to generate between £15 million and £25 million every year, with funds ring-fenced to support major transport investments in the city centre, principally a tram system.

Businesses within the defined city centre boundary offering 10 or more parking spaces would be subject to the levy.  Businesses with 9 or fewer parking spaces would not have to pay the levy.

Disabled parking spaces and hospitals would be exempt from the levy. Fleet vehicles would also be exempt.

There may be other exemptions depending on the feedback we receive.

This consultation aims to understand how businesses would be affected by the scheme, with feedback used to help shape the proposals.

An outline business case would be developed and a report submitted to the Department for Transport for approval.

Should the proposal receive support from Government, further consultation with businesses and stakeholders would take place later this year.

Subject to full approvals, the earliest a workplace parking levy could be introduced to Leeds city centre would be April 2029. 

Benefits of a workplace parking levy

As part of the council’s Connecting Leeds Transport Strategy, we are creating a people-friendly, cleaner, safer environment for everyone who lives, works and visits Leeds. 

Three of our strategic priorities are:

• Helping to deliver a tram system
• Enhancing public transport
• Transforming the city centre.

This includes improving city centre public realm and our spaces, and making positive changes which give greater priority to public transport and more active and sustainable methods of travel such as walking and cycling.

The West & North Yorkshire Chamber of Commerce support the improvement of public transport in the city, and we also regularly receive strong support from key city centre businesses and organisations who welcome our Connecting Leeds proposals to improve transport connectivity and encourage active modes of travel.

Separately, the West Yorkshire Combined Authority’s phase 1 consultation for mass transit saw that 74% of respondents supported it. 

The council has received significant funding towards its ambitions over recent years, but recognises that current funding levels are insufficient to cover all aspects’ of these priorities. As a result, we are looking for alternative funding to deliver these activities, and want to work with partners including local and regional government alongside the private sector to realise these shared ambitions.

Funding generated by a workplace parking levy would be used:

• As a local contribution towards mass transit. Although the government will provide the majority of the funding for the West Yorkshire Combined Authority’s mass transit system, local contribution of 15% to 20% are required.
• To enable the council to deliver transport improvements which offer greater priority to buses. This will help reduce journey times and increase reliability of services, improving passenger experience and making public transport more attractive. This will support wider bus reforms and the franchising of services proposed by the Mayor of West Yorkshire and the Combined Authority.
• Exclusively for city centre transport and public realm. The funds would be ringfenced to support city centre schemes which encourage active and sustainable travel, reduce traffic congestion, help improve pedestrian safety, and improve air quality.

Together, these improvements would offer a greater incentive for commuters to travel into the city centre using public transport, and encourage people to travel more sustainably in the city centre.