Key Points

• Cardiff Council has ruled out introducing a city-wide congestion charge as its preferred road-user payment option.
• Councillors have instead backed plans to consult on a Workplace Parking Levy (WPL), which would charge employers for employee parking spaces.
• The decision emerged during consideration of an outline business case examining ways to raise additional money to invest in transport as part of Cardiff’s 10-year transport strategy.
• The WPL is being considered as an alternative to a traditional congestion charge that would directly charge drivers for entering certain areas of the city.
• Preliminary estimates suggest the levy could be set at around £750 per employer-provided parking space, with possible annual increases.
• The scheme could generate approximately £10 million a year, boosting transport investment funding by around 40%.
• Although the WPL is the preferred option to explore, the consultation will also include a congestion charge option and a “do nothing” option.
• The consultation with residents and businesses is expected to begin in the summer, subject to Cabinet approval at its meeting on 16 July 2026.
• Any scheme would require Welsh Government legislation under the Transport Act 2000 to provide the legal framework for implementation.
• The final decision on the recommended option of the full business case is expected by 2027, with implementation possible by 2028 if approved.
• Income from any charging scheme would be ringfenced and could only be spent on transport projects.
• The council has been examining road charging options since April 2023, when it launched a three-stage business case process.

Cardiff (Cardiff Daily) July 16, 2026 – Cardiff Council has ruled out introducing a congestion charge, with councillors instead backing plans to consult on a workplace parking levy to help fund improvements to the city’s public transport network.

The decision came as the council’s cabinet considered an outline business case examining ways of raising additional money to invest in transport as part of the authority’s 10-year transport strategy.

As reported by Mark Mansfield of Nation Cymru, the cabinet’s preference is now clearly for a Workplace Parking Levy, which would charge employers for each parking space they provide for staff, rather than a congestion charge that would directly target drivers entering specific zones.

Why has Cardiff Council ruled out a congestion charge as its preferred option?

Cardiff Council’s Cabinet has announced that it does not back a congestion charge as the preferred road-user payment option for the city, supporting instead a Workplace Parking Levy.highways-news+1

The announcement follows appraisal of the road-user payment initial business case and public engagement, and comes as the council seeks ways to raise funds for its 10-year transport strategy.

As reported by Business News Wales, assessments carried out to date indicate that the Workplace Parking Levy would be the council’s preference, as it has less impact on local residents and businesses but can still help to raise funds for transport improvements.

How does the council compare the two options?

In researching Nottingham’s successful experience with a workplace parking levy, Cardiff Council found that there are choices around how such a scheme can be implemented.

The local authority therefore plans to hold a residents and business consultation to ensure the best options are taken forward for Cardiff, rather than pre-determining the outcome before the full business case is completed.

As Cllr De’Ath explained, it would be wrong to pre-judge the outcome before the final business case is completed and approved by Cabinet.

What is a workplace parking levy and how would it work in Cardiff?

The Workplace Parking Levy is being considered as an alternative to a traditional congestion charge, which would directly charge drivers for entering certain areas of the city.

Instead of targeting motorists, the levy would focus on workplace parking, with businesses charged for every parking space they provide for employees.

As reported by Wales Online, for Cardiff the council documents have provisionally estimated the charge to be £750 per employer-provided parking space, with the possibility of annual increases.

How much revenue could it raise?

The proposed workplace parking levy is anticipated to generate approximately £10 million annually, which would enhance transport investment funding by around 40%.

The income generated from any charging scheme would be ringfenced and could only be spent on transport projects, according to the council.

When will the consultation take place and what options will be included?

The local authority would hold a residents and business consultation to ensure the best options are taken forward for Cardiff, it said.

The consultation would begin in the summer, subject to Cabinet’s approval of the report when it meets on Thursday, 16 July 2026.

While a Workplace Parking Levy is recommended as the preferred option to explore, the option of a congestion charge, alongside a “do nothing” option, will also be included in the consultation.

When could a scheme actually be introduced?

The business case work is a three-stage process to develop the options to its conclusion, and as such the council cannot predetermine any decision until the final business case is completed and approved by Cabinet.

The final decision on the recommended option of the full business case is expected by 2027, with implementation possible by 2028 if approved by the Council.

What legal powers are needed to introduce a workplace parking levy or congestion charge?

Any scheme would require Welsh Government legislation under the Transport Act 2000 to provide the legal framework for implementation.

As GB News reports, the council has said it would look into the legal powers needed to introduce such a charge as part of the next stage of the business case.

Has Cardiff already committed to some form of road charging?

Cardiff Council has previously agreed in principle to introduce some form of road user charging, but only if a strong business case is made and public consultation and equality assessments are carried out.

Since April 2023, Cardiff Council’s Cabinet has approved the principle of introducing a road user payment scheme for the city – subject to preparation of a robust business case, consultation and an Equality Impact Assessment.

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How has this decision been reported across different media outlets?

As reported by Mark Mansfield of Nation Cymru, Cardiff Council has ruled out introducing a congestion charge, with councillors instead backing plans to consult on a workplace parking levy.

Wales Online summarised the situation as Cardiff council, having mooted a congestion charge since 2023, now looks set to back a so-called workplace parking levy.

What does Business News Wales report?

Business News Wales reported that Cardiff Council’s Cabinet has announced that it does not back a congestion charge as the preferred road-user payment option for the city, supporting instead a Workplace Parking Levy.

The outlet noted that the assessments carried out to date indicate that the Workplace Parking Levy would be the council’s preference, as it has less impact on local residents and businesses.

What does GB News highlight?

GB News highlighted that the idea by Cardiff Council, known as a Workplace Parking Levy, would see businesses charged for every parking space they provide for employees.

The outlet reported that no final decision has yet been made and that the council said a preferred option will not be chosen until the full business case process is completed, which is expected by 2027.

Background of the Development

Cardiff Council has been examining road charging options since April 2023, when it launched a three-stage business case process to assess different schemes.

The first stage of this work has now been completed for the Workplace Parking Levy, allowing the council to explore it in more detail alongside other road user charging ideas, including a congestion charge.

In April 2023, the Cabinet approved the principle of introducing a road user payment scheme for the city, subject to a robust business case, consultation and an Equality Impact Assessment.

The current Cabinet report provides an update on the business case work carried out to date and seeks support to include more detailed assessment of a Workplace Parking Levy option in the second stage of the outline business case.

The council has said that a detailed assessment of the various options must take place so that any decision is based on the facts and ensures fairness for residents and businesses.

Prediction: How This Development Could Affect Cardiff Residents, Businesses and Commuters

If the Workplace Parking Levy is ultimately adopted, employers in Cardiff that provide parking spaces for staff could face an additional cost of around £750 per space per year, based on current provisional estimates.

This could lead some businesses to reduce the number of staff parking spaces available, encourage employees to use public transport, cycling or walking, or adjust pay and benefits to reflect the new charge.

For commuters, the scheme is intended to discourage driving to work and to generate funds that would be ringfenced for transport projects, potentially improving bus services and other public transport options in the city.

Residents who do not work in Cardiff but use the city may see less change in their day-to-day travel compared with a congestion charge, which would directly target drivers entering specific zones.

However, if the levy leads to fewer parking spaces at workplaces, some workers may be forced to park further away or rely more heavily on public transport, affecting their daily routines and possibly increasing pressure on existing bus and rail services.

The consultation process this summer will allow residents and businesses to shape the final design, including whether the levy is introduced, how it is structured, and how the revenue is used, meaning the ultimate impact will depend on the options chosen and the level of support from the public and Welsh Government legislation.