ENVIRONMENTAL campaigners have put a £100 a year price tag on the privilege of town centre parking provided by employers with the flat rate tax increasing annually. Pressure group Transport 2000 wants to levy a £100 tax on company-provided car parking as a measure to discourage commuting and raise more money for improving alternative modes of travel to work as well as increasing funding for local government, health and education.

In a new document published this week, Transport 2000 proposes increasing the levy by £50 a year over the next 10 years and giving local authorities the opportunity to charge a further £100 to fund local transport schemes. 'A Taxing Question: how a parking tax might work' suggests the tax be introduced on all private non-residential off-street parking spaces at a flat rate across the country. Disabled parking spaces and small businesses in rural areas would be exempt.

Report author Stephen Joseph is one of Deputy Prime Minister John Prescott's closest transport advisors and the proposals come after the Government confirmed that a parking tax is firmly on its transport agenda as part of its plans for an integrated transport policy. If adopted by the Government and introduced nationwide, Transport 2000's proposals would net the Exchequer £650 million in the first year, rising to £2.8 billion in year 10, plus a further £650 million a year for local authorities.