HC Deb 05 May 1998 vol 311 cc559-60
33. Mrs. Cheryl Gillan (Chesham and Amersham)

What representations he has received on the impact on small businesses of taxes on company car parking space. [39539] The Parliamentary Under-Secretary of State for the Environment, Transport and the Regions (Ms Glenda Jackson): Taxing company parking provision was one of the range of options raised in the Government's consultation exercise on developing an integrated transport policy. A number of respondents commented on it, some specifically from the perspective of small businesses.

Mrs. Gillan

Does the Minister agree that the last thing that our small businesses want is more taxes? Will she take this opportunity to rule out once and for all the leaked proposals for taxation to fall on small businesses, factories, offices and shops? Does she realise that, if she does not rule that out now, the Government will prove themselves to be bad for business?

Ms Jackson

No final decisions have been taken on legislation to introduce a non-residential parking levy or on the shape that such a levy would take. We have been considering the social and economic implications nationally and individually of, among other things, the coverage of a levy and exemptions for types and sizes of business—those issues need careful consideration. I am told by small businesses that one of their gravest concerns is the seemingly endless congestion on city streets, which not only precludes and delays delivery, but deters people from shopping—pavements are choked with fumes and people take their lives in their hands if they have to cross the road. The Government are committed to ensuring that that is not only curtailed, but improved.

Mr. Alan Simpson (Nottingham, South)

Before my hon. Friend is deterred from going down that path, will she examine the phenomenal success of the initiative taken by Boots in Nottingham, which pre-empted any Government decision and, of its own volition, shifted its priorities in favour of subsidies to public transport use and to car sharing? Given the initiative's popularity with the public and with the employees, does not it represent a better model to commend to large and small firms alike in any local economy?

Ms Jackson

My hon. Friend is entirely right. We are commending Boots's model to businesses and industries, both large and small. Boots is by no means the only company that has adopted a green transport plan, which brings enormous benefits not only to the company but to their employees.

Mr. Christopher Chope (Christchurch)

Is the Minister on the side of the teeny-boppers in this argument? Does she accept that a tax on car parking spaces will lead to more red tape, increase the cost of food and give rise to more anti-social on-street parking? Is not it better for cars to be in car parks than to be on the road?

Ms Jackson

I think that the choice of the word "teeny-bopper" was somewhat unfortunate, given the age of the new leader of the Conservative party—although he has shown few signs of being able to bop anywhere. On additional levies for non-residential parking, an interesting finding by the British Retail Consortium is that its customers are less concerned about car parking costs than about ease of access. The charges levied by the business rates are based on the whole curtilage of the building, whereas it has been assessed that the average cost per annum of a parking space for large retail outlets is about £50. Given the turnover of such businesses, that is a small charge.