Making a Scheme

Under the 2019 Act, local authorities may only make a WPL scheme when they have a local transport strategy in place, and it appears to the local authority that the scheme will (directly or indirectly) facilitate the achievement of policies in its strategy. The local authority may also wish to consider how the scheme would support the objectives set out in the Regional Transport Strategy.

Two or more local authorities may make a WPL scheme jointly, providing they both have a local transport strategy and funds raised will support the objectives in these strategies. In the 2019 Act and in regulations, and in this guidance document, references to ‘the local authority’ may be understood to mean the two or more local authorities acting jointly, or for example, the local transport strategy of each of the local authorities.

This section sets out what steps local authorities must take before making, amending, or revoking a WPL scheme. These requirements apply any time a local authority seeks to amend or revoke an existing scheme. If a local authority intends future modifications to the scheme, for example for the licensing charge to be adjusted each year in line with inflation, then this should be included in the scheme when it is made.

Definition of workplace parking places

Section 71 of the 2019 Act contains provisions which set out the definition of workplace parking places (WPPs). The 2019 Act allows for local authorities to make different provision for different purposes or different areas within the licensing area.

WPPs are parking places provided at a premise, if the parking place is occupied by a motor vehicle used by business owners, employees and certain visitors such as workers, agents, suppliers, business customers and business visitors for the purpose of attending a place at which the relevant person carries on business at, or in the vicinity of, the premises. Parking places occupied by someone attending a course of education or training, and parking places occupied by members of bodies whose affairs are controlled by its members are also considered WPPs.

The WPP does not have to be a marked parking space for it to be liable for WPL. Bicycles and e-bikes are not included in the definition of motor vehicle and parking for these are therefore are not included in the definition of WPP.

Workers, agents, suppliers, business customers and business visitors are defined in the 2019 Act, but generally mean an individual who is visiting that premise in the course of the individual’s employment, or in the course of carrying on business. Parking places used by volunteers are not considered WPPs. Neither are parking places used by non-business customers, for example a supermarket customer.

The only test for whether a parking space is a WPP is set out above. The 2019 Act does not make provision specifically for parking places occupied by types of vehicles such as fleet vehicles and car clubs. Cases will need to be assessed based on the particular circumstances to determine whether a parking place is a WPP (ie occupied for the purpose of attending a place at which the relevant person carries on business at, or in the vicinity of, the premises). If a local authority wishes for an exemption for certain types of vehicles, they will need to provide for that exemption in their local schemes. If the parking is provided off-premise, for example an employer has arranged for car parking at a neighbouring premise or in a multi-storey car park, then these places are liable for WPL. Regulations make provision for liability for charge under these circumstances, which is outlined further under “Liability for Charge.”

Since the 2019 Act requires a workplace parking place to be occupied by vehicles used by certain people, local authorities will not be able to determine the number of WPPs simply by counting the number of parking spaces provided in the car park. We expect that the local authority will need to engage with the employer to verify that the licence covers the number of WPPs provided, ensuring, for example, that vehicles used by non-business customers are not included in the local authority’s assessment during compliance checks. This is discussed further in the section ‘Enforcement and Compliance.’

National Exemptions

Section 79 of the 2019 Act contains provisions for national exemptions from WPL charges. These national exemptions are:

Places reserved for Blue Badge holders
Places for NHS workers at qualified NHS premises
Places at hospices

Local authorities can require a licence to be held for these places but may not levy a charge.

Local Exemptions

Section 78 of the 2019 Act contains provisions for local authorities to make further exemptions in their schemes. Local authorities are not required to create any local exemptions but have discretion to include exemptions in their scheme design that suit their local circumstances, and support the objectives in their local transport strategy. Local exemptions may either be from charge (as the national exemptions) or from the licensing scheme altogether. Exemptions may take the form of:

specific premises, or premises of a specified description
premises with a specified number of parking places (or fewer), or
descriptions of persons or motor vehicles (including descriptions by reference to any parking places provided for the exclusive use of such persons or motor vehicles)

The appropriate exemptions will depend on the local authorities’ circumstances and the objectives of the scheme. When deciding whether to provide for local exemptions within their schemes, local authorities should carefully consider how they may support the objectives set for the scheme, and the objectives set in their local transport strategy.

As an example, the Nottingham scheme provides for:

a 100% discount for employers (and any associated employers) who between them provide 10 or fewer workplace parking places in total at all of their premises within the council boundary (Premises which provide more than 10 spaces do not receive a discount for their first 10 WPPs)
a definition and exemption for 'occasional business visitors' so that only WPP occupied by employees, contractors, suppliers etc for whom the premise is a 'regular place of work' must be licensed
an exemption for motorcycles and mopeds

Additional other local exemptions have been suggested by respondents to the consultation on WPL regulations and guidance. These include exemptions for charities, parking reserved for electric vehicles, parking for certain types of workers (such as specific occupations or working particular hours), businesses not adequately served by public transport, and car clubs/share. Other respondents suggested that local exemptions would hinder local authorities in realising the full value of their WPL scheme. Local authorities should carefully consider whether exemptions support their local objectives: and may wish to consider the objectives and evidence set out in other documents such as the national route map to achieve a 20% reduction in car km travelled by 2030 and information for employers on car clubs or shared.

Licence Charge

Under the 2019 Act, the amount of the licence charge is for local authorities to determine and will depend on their local circumstances and the objectives of their local scheme. In setting the charge, a local authority must have regard to the purposes for which the authority is to apply any of the net proceeds of the scheme.

WPL schemes may provide for different charges (or no charge) for different cases, such as (but not limited to): different days, different times of day, different parts of the licensing area, different descriptions of persons, different descriptions of premises, including different numbers of workplace parking places provided at a licensed premises, and different classes of motor vehicles.

Details on how the charge and revenue will support the objectives in the LTS should be included in the statement of objectives (see section ‘Statement of Objectives’). The impact of the level of charge should also be included in the assessment of the impacts of schemes (see section ‘Impact assessment’). As set out elsewhere in this guidance, local authorities have a statutory duty to include the proposed charge in the proposal which is published for consultation (see section ‘Consultation’). As a matter of good practice, local authorities may consider setting out the analysis which supports the proposed level of charge.

There are a number of factors that local authorities may consider when determining the licence charge(s). The following list is not exhaustive and the order does not indicate the relative weight a local authority should place on each factor: these factors are intended to help guide local authorities as they begin to consider the level of charge(s) which is appropriate for their circumstances and objectives.

The precedent set by Nottingham, and others in UK. Further information on the Nottingham scheme can be found at the end of this guidance document under ‘Definitions and Resources’ – in 2022/23 the annual licence charge is £458 and increases in line with RPI on 1 April each year.
The impact of the amount on employers, and potentially employees or students if the employer chooses to charge for parking provision.
The intended use of revenue and how the amount of revenue raised will support the objectives set out in the LTS.
The level of charge which will incentivise behaviour change by employers and employees and will have an impact on the local authority’s objectives of the scheme (i.e. traffic, congestion, air quality, emissions).
The response and themes arising from engagement activities and impact assessment work.
The potential impact on investment in the local authority area, both positive (for e.g. improving public transport and reducing traffic) and detrimental (increased cost of providing workplace parking places).
Prevailing parking charges in public and other car parks (as comparators) and controlled parking zones.
Prevailing public transport fares and availability (as comparators).

This analysis may support different charges being set in different circumstances, as set out above. Equally a local authority may determine that a single charge level will best support the objectives of the scheme.

The requirements set out in this document when making a scheme also apply when a local authority amends a scheme. If the local authority intends periodic adjustments in the licence charge, such as annual adjustments in line with inflation, then this should be set out in the proposed scheme.

Area in which the scheme operates

It is for the local authority to determine the area in which a WPL scheme operates, within their local authority boundary.

For the WPL scheme to operate effectively, local authorities may need to consider parking displacement onto neighbouring streets, and the relationship between controlled parking zones and WPL schemes. Additionally, respondents to the consultation on WPL regulations and guidance indicated that the area in which a scheme operates will have a significant impact, with a number of respondents raising the availability of public transport alternatives to commuting by car as an issue of concern.

In Nottingham, the WPL scheme operates in the whole local authority boundary.

Hours of operation

The 2019 Act provides for local authorities to vary the hours or days of the week that the scheme is in effect.

Respondents to the consultation on WPL regulations and guidance indicated that the hours during which a scheme operates will have an impact with concerns raised about the availability and safety of public transport late at night and early in the morning.

Provisions on hours of operation (including potential grace periods or other variations) would be for local authorities to determine based on their local circumstances and objectives of the scheme. For example, in Nottingham, the WPL scheme operates at all times and days and provides for employers to arrange with the local authority a short grace period to allow for shift changeovers during which the licenced number of WPPs may be exceeded.

Period in which the scheme is in force

The 2019 Act provides for local authorities to set out in their schemes the period in which the scheme is to remain in force, or that the scheme is to remain in force indefinitely.

Required Documents for Proposal

The 2019 Act and regulations set out certain requirements for local authorities as they develop and implement a WPL scheme. Local authorities proposing a scheme must prepare

An outline of the proposed scheme (‘the proposal’)
A statement about the objectives of the proposal, and
An assessment of the impacts of the proposal

Further details on each of these is outlined in this section.

The Proposal

Under the 2019 Act, the outline of the proposed scheme that is published for consultation must include the proposed:

licensing area
period during which the scheme is to remain in force (or that it is to continue indefinitely)
charges payable on licences (expressed as a specified sum of money for each workplace parking place provided)
persons, premises or motor vehicles (or descriptions of such persons, premises or motor vehicles) that are to be exempt from the scheme or from paying charges under it (also see “National Exemptions”)

Regulations allow for schemes to include provision for enforcement by way of penalty charge. Further detail on this is included under the section “Penalty Charges.” If a local authority includes provision for penalty charge, they may consider including details on the penalty charge as part of their proposal. This would be a matter of good practice and is not required in the 2019 Act or in regulations.

The amount of the penalty charge
Whether the amount will be reduced if paid within a certain period of time, and by how much

Finally, there are further elements which must be included in the final scheme as made, and which could be included in the proposal, but are not required to be:

the date on which the scheme is intended to come into effect
the days on which, and hours during which, a licence is required
arrangements for the periodic review of the operation and effectiveness of the scheme including, in particular, how the outcome of a review is to be communicated to persons affected by it, and
process for review of local authorities’ licensing decisions

Statement of Objectives

A statement of objectives must be published and this statement must include:

the objectives that the local authority intends the proposal to achieve
its assessment of how (or the extent to which) the proposal will achieve those objectives, and facilitate (directly or indirectly) the achievement of policies in its local transport strategy, and
how it intends to apply any net proceeds of the scheme

WPL schemes may only be set up if it appears to the local authority that the scheme will (directly or indirectly) facilitate the achievement of policies in its local transport strategy. Revenue may only be spent on the expenses of operating the scheme and on facilitating the achievement of policies in the authority’s local transport strategy.

Impact Assessment

The 2019 Act requires that an assessment of the impacts must be undertaken by the local authority. The assessment must, in particular, set out what the local authority considers to be the likely effects of the proposal on:

persons who may have to pay charges under (or as a result of) the scheme, and
the environment

We expect that local authorities will have existing models to ensure that other statutory or good-practice impact assessments are undertaken as with any local authority decision, such as a Business Impact Assessment. These may vary based on the circumstances of the local authority and the detail of the proposal (for e.g. the Islands Community Impact Assessment).

Findings from Transport Scotland Consultation

The Transport Scotland consultation on WPL regulations and guidance received a number of responses on the impact of WPL schemes on people without access to alternative forms of transport, including low-paid and shift workers, and on people with protected characteristics (The protected characteristics are age, disability, gender reassignment, marital or civil partnership status, pregnancy and maternity, race, religion or belief, sex, and sexual orientation). Many of the themes raised in consultation were outwith the scope of regulations and the impacts will arise from decisions for local authorities. These themes have been reflected in the impact assessments on the regulations for local authorities to refer to as they undertake engagement and impact assessment. The Equalities Impact Assessment (EQIA) outlines potential impacts by each protected characteristic; the Fairer Scotland Duty assessment considers the potential impacts on disadvantaged groups; and the Business and Regulatory Impact Assessment (BRIA) considers the potential impacts on business.

In the consultation on WPL regulations and guidance, respondents had further suggestions for elements local authorities may wish to consider as part of their engagement and consultation. It is not possible or appropriate to provide an exhaustive list given that each local authority and each proposed scheme will be different and will give rise to different considerations for local assessment. The following is therefore a non-exhaustive list of examples of things which a local authority might consider as part of its assessment of impacts of a proposal:

The impact on low paid workers:

Alternative forms of transport including provision of, and access to, sustainable transport or public transport
The impact of costs of a WPL scheme on businesses and on city centres
Potential exemptions to the scheme
How the revenue will be spent (this could be included in the statutorily-required statement about the objectives of the scheme)

Consultation

The 2019 Act sets out requirements for who must be consulted, and what must be included in the proposal which is published for consultation. The regulations set out further detail on where and how the proposal must be published. This section provides an overview of the requirements set out in the 2019 Act and regulations, as well as signposting to best practice.

The 2019 Act sets out requirements that the proposal, statement of objectives, and impact assessments must be published for consultation. There is a level of detail required to be in the proposal as set out in this guidance section ‘the proposal.’ The Act requires that this proposal be put to consultation. Due to the level of detail required to be set out in the proposal, we expect that in practice, the local authority may need to do substantive initial scoping and stakeholder work to develop the final proposal for the statutory consultation, for example, putting forward different options for consideration by stakeholders. This initial scoping and engagement work could take the form of an initial consultation to help develop the proposal, although this is not required in statute and it will be for the local authority to determine the best way to develop the proposal, taking into account best practice to inform decision making.

Depending on the approach taken by the local authority, then the final statutory consultation would act in a similar manner to the ‘objection period’ under the rules governing LEZ scheme implementation: i.e., a final opportunity for persons impacted by the proposal to comment. The statutory consultation required under the 2019 Act would therefore be a final stage in the process of stakeholder engagement.

Guidance on consultation best practice can be found in Scottish Government Consultation Good Practice Guidance.

The consultation also plays an important role in the examination process (if an examination is initiated by the local authority proposing the scheme or Scottish Ministers). For example, the consultation report must be sent to the reporter when initiating an examination (and may help inform the reporter’s determination of which procedure to follow in conducting the examination), and consultees must be notified of an examination and may be invited by the reporter to provide further representations. Further detail on this is provided under the ‘Examination’ section of this guidance.

Publication of Proposal

Regulation 2 contains provisions regarding the publication of the proposed scheme. The local authority must publish certain documents in relation to the proposal. They must make these documents available on the local authority’s website, and make a copy available at the local authority’s office during normal office hours, and, if the local authority thinks appropriate, at other such places and times as it determines. The local authority must send a copy of these documents to the Scottish Ministers. The documents referred to are:

The notice which has been published in the newspaper (below)
an outline of the proposed scheme (as set out under 'The Proposal')
a statement about the objectives of the proposal (as set out under 'Statement of Objectives'), and
an assessment of the impacts of the proposal (as set out under 'Impact Assessments')

Under the regulations, the local authority must publish a notice in at least one local newspaper circulating in the area of the proposed scheme. The notice must include:

The name of the local authority
A description of the scheme proposal and its general nature and effect
The address and times at which the documents referred to above can be inspected (ie at the local authority’s office and any other locations as appropriate)
The fact that the information referred to above is available on the local authority’s website

The local authority must also take such other steps as it considers appropriate for ensuring that adequate publicity about the proposal to make the scheme is given to persons likely to be affected by it.

Who to Consult

Under the 2019 Act, local authorities must consult “persons as the authority considers appropriate in relation to the proposal (including, in particular, persons that the authority has identified as likely to be affected by the proposal).” It is for the local authority to determine who the appropriate consultees may be. During their consultation, local authorities should request respondents’ contact details so that they can satisfy the requirement to notify consultation respondents in the case that an examination is initiated (further discussed under the section ‘Establishing an Examination’).

In the consultation on WPL regulations and guidance, Transport Scotland asked whether regulations should specify further statutory consultees that local authorities are required to consult. A majority of respondents supported specifying statutory consultees, with a wide range of suggested statutory consultees provided in comments. The reasons for the proposed statutory consultees were primarily concerns about a lack of available public transport and the need to ensure that alternative forms of travel are made available.

However the range of suggested consultees by respondents indicates that it would not be appropriate to specify named statutory consultees in regulations, because the appropriate consultees will depend on the specific proposal and the local circumstances of individual schemes. In addition, many of the suggested consultees would reasonably be included under the requirement of the 2019 Act to consult those likely to be impacted by the proposal.

Therefore there are no named statutory consultees in either the 2019 Act or regulations, and it is up to local authorities to determine who is appropriate, and in particular who is likely to be affected by the proposal. Local authorities will need to determine whether a public consultation would be appropriate based on their proposal however there is no requirement in the 2019 Act to do this and the requirement is to consult those who are likely to be impacted as outlined above.

While not an exhaustive list, the following organisations have been identified through engagement and consultation as potential consultees for local authorities to consider when deciding how to fulfil their duty to consult persons likely to be impacted by a scheme:

businesses that would be subject to a charge
trade unions, employees, and students
organisations representing business interests (such as Chambers of Commerce or other trade bodies such as the Federation of Small Businesses)
transport providers
transport user groups (including sustainable travel)
equalities groups, in particular groups advocating on poverty and disability, with further discussion on potential equalities issues to be considered under “Impact Assessments”
neighbouring local authorities
regional transport partnerships (RTPs)
Community Planning Partnerships
Nearby residents and businesses who may be impacted by parking displacement and/or by investment in transport funded by WPL revenue.

Consultation Report

Following the consultation, the local authority must prepare and publish a report (‘consultation report’) which:

summarises the consultation responses received
states whether or not the authority intends to proceed with the proposal (or the proposal as modified in light of the consultation), and
sets out the authority’s reasons for whether or not it intends to proceed

The local authority may also wish to include information on the number of consultation responses, an overview of who responded to the consultation, and the local authorities’ response to the issues raised by consultation respondents. We expect that the consultation report will be an important piece of evidence that the local authority and Ministers consider when deciding whether to initiate an examination on the proposal. If an examination is initiated, the report will form part of the evidence the reporter considers (as set out under the “Examination” section below). Therefore local authorities may wish to carefully consider this report and their response to the issues raised in consultation to demonstrate good decision-making in relation to proposals and the decision to amend or take forward the scheme.

The consultation report must be:

published on the local authority’s website
sent to consultees, as outlined above
sent to the Scottish Ministers

8-Week Standstill Period

Section 73(5) of the 2019 Act requires a period of 8 weeks to elapse during which time the local authority may not proceed with implementing their proposal (i.e. making, amending, or revoking a WPL scheme). Under the 2019 Act, the 8 week period begins when the local authority publishes the consultation report. The standstill period is intended to allow the local authority and Ministers to consider whether it would be appropriate for either party to initiate an examination, as set out under the section “Examination.” If no examination is initiated, then local authorities may proceed with making the scheme following the 8-week period.

The local authority may proceed with making a scheme on conclusion of the 8 week standstill period, unless an examination has been initiated, in which case, they may proceed on completion of the examination (under section 75(5) of the 2019 Act – further details under ‘Examination’ section).

Notice to make a scheme

Regulation 5 makes provision for the steps a local authority must take within 14 days of making a scheme.

Local authorities must publish notice of making the scheme on their website and at least once in a local newspaper circulating in the area to which the scheme relates. The notice must include the following information:

The name of the local authority
A description of the scheme as made
The date of the making of the scheme and the date on which it comes into effect
Each address at which a copy of the scheme, as made, can be inspected, and the times when inspection can take place at each such address, and
The fact that a copy of the scheme as made is available on the local authority’s website

The local authority must make a copy of the scheme as made, and a statement of the date on which it comes into effect, available for inspection at their offices during normal office hours, and (if the local authority think fit) at such other places within its area and during such times at those places as it may determine. If an examination was held on the proposal, a copy of the examination report must also be made available.

The local authority must publish the scheme and (if an examination was held) a copy of the examination report on the local authority’s website.

The regulations also require the local authority to take such other steps as it considers appropriate for ensuring that adequate publicity about the making of the scheme is given to persons likely to be affected by it.

[1] Shared transport: an action kit for employers, Transport Scotland / CoMoUK
[2] The protected characteristics are age, disability, gender reassignment, marital or civil partnership status, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

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