A decision on whether Nottingham will become the first city to be allowed to impose a workplace parking space levy is imminent.

A consultation on the controversial scheme, which will see local businesses charged up to £350 annually for each parking space they provide to employees, has ended.

The Department for Transport (DfT) is now considering the responses and will make a decision “imminently”.

If it decides in favour of imposing the levy the repercussions for companies could be massive, as other councils are expected to follow Nottingham’s lead.

Nottingham-based fleets have already been advised that spaces that have company vehicles parked in them overnight will not be subject to the levy, which is designed to stop commuters driving to and from work.

“Companies could rethink their fleet strategy and change to a pool car-based model, encouraging employees to commute to work on public transport and then have the use of the pool car during the day,” suggests Robert Kingdom head of marketing and business development at Masterlease.

However, this would not be practical for many fleets.

The levy would also create difficulties for businesses that try to pass on the cost to their drivers.

“Fleet car drivers may well argue that their vehicle serves a business function and as such they should not be expected to pay to park at work,” said Kingdom.

The British Chambers of Commerce (BCC) has written to the minister for transport voicing its concerns.

It said if other councils follow Nottingham’s lead, the potential cost to businesses could reach £3.4 billion.

David Frost, director general of the BCC, said in addition to concerns over the massive potential cost to businesses, he disputes the congestion-busting aims of WPL.

“Far from reducing congestion, the new tax will displace vehicles from off-road parking bays onto the streets adding to congestion,” he said.

“On changing behaviour, the ability of businesses to pass the cost of the levy onto their employees will be difficult, especially in a recession when businesses are looking to retain their key staff and attract new recruits in the future.”

The Forum of Private Business said Nottingham’s proposal “discriminates against small-business employers and will force many more struggling firms to close”.