Motorists in a major Scottish city may soon need to pay a new parking tax when using their workplace car park.

If it comes into effect, the Workplace Parking Levy in Edinburgh will issue a charge to employers and education organisations for the number of parking spaces that their workers regularly use.

A spokesperson for Edinburgh City Council stated that the change could help to reduce congestion in the area and encourage more residents to choose public transport.

They explained: “For businesses, the cost of congestion impacts business by extending journey times, later deliveries, and increasing worker time on the road rather than in productive work.

“For residents and commuters, congestion increases journey times, whether they travel by car or some modes of public transport and active travel.”

Originally proposed in August 2018, the Workplace Parking Levy was initially shelved in May 2024, with councillors having mixed views on the idea.

However, after a reconsideration, the council could soon charge workplaces for every space that their employees use on a regular basis.

Edinburgh City Council has announced that it will make a formal decision on whether the levy comes into effect at the end of the week.

In contrast to various other cases of traffic calming measures introduced by local councils, Edinburgh City Council would not receive funding for the scheme, which is set to cost about £100,000.

However, a spokesperson for the council highlighted that the Workplace Parking Levy represents good value as it could have a significant impact on air quality.

They added: “Congestion has an impact on air quality. Studies have linked small particules from road traffic to the cause of a variety of health effects including heart and lung disease, links to premature death, diabetes, dementia, mental health and birth outcomes.”

Whilst the change would affect hundreds of thousands of motorists in Edinburgh, it is not the first time that a similar scheme has been set up in a UK city.

Nottingham City Council introduced a similar levy scheme for employers in 2011, and currently charges £550 per year for each parking space that is provided.

Employers who avoid paying this fee or workers who do not have the correct permit could also risk a fine of up to £300.