COMPANIES which were encouraged to relocate to green field sites are worried their moves will cost them dearly in taxes on private workplace parking. Large new office developments have grown hand in hand with large corporate car parks, which are now being blamed for commuter car congestion.

In its white paper on integrated transport the Government says employees driving to work and enjoying free parking cause a 'significant amount of peak hour congestion'. It continues: 'We believe that new measures are needed to tackle excessive workplace parking provision at existing developments so local authorities can develop parking management policies that support their transport and development plans.'

Fears have already been raised that the tax would do nothing to encourage staff not to drive into work, but would simply create a new tax on business. The Confederation of British Industry has attacked the proposed charges as a 'blunt instrument' saying it will effectively tax businesses twice for the privilege of having a parking space.