Workplace parking levy could be introduced across the whole of Oxford by 2021

A study into whether the scheme should be brought in is being launched by Oxfordshire County Council, with bosses saying it could rake in millions to pay for public transport improvements.

The measure would charge businesses an annual fee for each parking space they own, with the idea condemned by critics.

The council may also need to look at putting controlled parking zones in neighbourhoods that don't currently have them to avoid commuters clogging up residential streets.

Oxfordshire Town Chamber Network director Keith Slater warned employers may decide to pass the extra costs on to staff.

He added: "In the grand scheme of things this may not be a massive hit for businesses, but they already pay for parking spaces through business rates and this is just another stealth tax.

"If the council starts raking in millions from this, it is going to make firms very unhappy."

Jeremy Mogford, hotelier and co-chairman of business group ROX, said it was 'just another measure to penalise drivers'.

She said: "It will damage city centre commerce. The councils have already done enough damage with their approach to parking.

"It is deeply depressing."

But county council leader Ian Hudspeth insisted it was 'not about imposing something on businesses' and could help cut congestion in Oxford.

He pointed to Nottingham, where the council used funds from the UK's first workplace parking levy to extend its tram network and redevelop the city's station.

Mr Hudspeth said: "We have got the ambitions in Oxford but at the moment there is no funding system to deliver them.

"This is one potential way for us to get the infrastructure Oxford badly needs.

"If you look at Nottingham, is an example of somewhere where the benefits are tangible and can be seen by anyone who visits."

has examined the levy in Nottingham but officials said yesterday that it would not necessarily be the same in Oxford.

In Nottingham, businesses with 11 or more parking spaces are charged £375 per space each year but the levy does not apply to customer parking spaces or emergency services and hospitals.

Mr Hudspeth said other options like a congestion charge would also be examined as part of the study but it was seen as less viable because of the equipment needed to enforce it.

The parking levy is seen by officials as the only viable way to pay for major transport schemes included in the Oxford Transport Strategy, such as so-called 'rapid' bus routes, new park and ride sites, the redevelopment of Oxford Station and so-called 'super cycle routes'.

They said it could be introduced in the city centre only, across the whole of Oxford's administrative boundary or that area along with Botley and Kennington.

A report to senior councillors said £25m had been raised in Nottingham since its introduction. For every £1 raised, £3 more was match-funded – meaning about £100m had been brought in for transport schemes.

It said a business case could be produced by March 2019, a consultation held and approval obtained by March 2020.

But because the scheme would require government approval – and a general election scheduled in 2020 – it was not likely to come into force until 2021.