Cardiff commuters could see a new way to fund buses

demoduck.co.uk editorial team 2026-07-20 18:13 3 min read

A bus driving past the historic Cardiff Crown Court building in Wales.

By the demoduck.co.uk news desk | 20 July 2026

Cardiff residents would not pay a congestion charge under the transport funding approach backed by the council’s Cabinet. Instead, Cardiff Council plans to consult residents and businesses on a Workplace Parking Levy, which would charge certain employers for parking spaces provided on their premises.

Money raised through the proposed levy would be reserved for improvements to Cardiff’s bus network. The council says its priorities include more frequent services, lower fares and a more reliable alternative for people who currently commute by car.

No Cardiff levy has been designed or introduced. Details including the charge, exemptions, affected areas and implementation timetable would have to be developed after consultation and further legal work.

Businesses would be charged for workplace spaces

A Workplace Parking Levy is paid by employers based on eligible parking spaces at their premises. It is different from a congestion charge, which normally applies to vehicles entering or travelling within a defined area.

The immediate focus would therefore be organisations that provide workplace parking rather than every driver entering Cardiff. Which employers would qualify, and whether any costs would be passed on to staff, cannot be established until the council publishes a detailed scheme.

Cardiff Council has studied Nottingham’s existing levy. That scheme principally affects larger organisations, while many smaller employers and premises such as hospitals are exempt. The council has indicated that exemptions and support for essential users would form part of Cardiff’s discussions, but Nottingham’s rules should not be treated as confirmation of the eventual arrangements in the Welsh capital.

For commuters, the proposal creates two separate considerations. People driving to workplaces with eligible parking could be affected by decisions made by their employers, while bus passengers could benefit if levy income produces the promised improvements in affordability, frequency and reliability.

Bus improvements are the stated funding goal

The proposal stems from Cardiff Council’s search for additional public transport funding, a process its Cabinet has pursued since April 2023. It forms part of the city’s 10-year Transport Strategy and responds to pressure on roads as Cardiff’s population and economy grow.

Cardiff commuters could see a new way to fund buses

Cllr Dan De’Ath, Cabinet Member for Climate Change, Strategic Planning and Transport, said residents had identified cheaper, more convenient and reliable buses as their priority. He argued that continued growth in car use would increase congestion, damage air quality and make journeys less predictable.

According to the council, Cardiff has the highest car ownership level among the UK’s Core Cities. The Workplace Parking Levy is its preferred option because initial assessments suggest it could raise transport funding with less direct impact on residents and businesses than a congestion charge.

The amount that could be raised has not been stated in the published announcement. Without a proposed charge, confirmed exemptions or an estimate of eligible spaces, businesses cannot yet calculate their possible liability and residents cannot assess how much additional bus funding would become available.

Consultation will shape exemptions and coverage

The consultation is expected to present three broad positions: exploring a Workplace Parking Levy, considering a congestion charge as an assessed alternative, or taking no new funding action. Although the congestion-charge option must remain within the assessment process, the Cabinet’s stated position is that it does not support introducing one.

Residents, employers and other stakeholders will be asked to comment on how a levy could operate fairly. Decisions still required include which organisations would pay, whether thresholds would protect smaller businesses, how essential services would be treated and where the revenue would be spent.

The council announcement refers to consultation activity beginning over the summer and continuing into the autumn. A definitive opening date, response deadline and final proposal have not yet been published in the source material.

Even after consultation, Cardiff Council could not implement a Workplace Parking Levy by itself. Any scheme would require Welsh Government secondary legislation under the Transport Act 2000 to establish the necessary legal framework.

Source: Cardiff Council Newsroom

Context & actions About this article

Source check Source trail

The report distinguishes Cardiff Council’s confirmed position from levy details that remain subject to consultation and legislation.

Checks

Confirmed that the Cabinet does not support introducing a congestion charge.
Confirmed that a Workplace Parking Levy is the council’s preferred option for consultation...
Separated Nottingham’s existing exemptions from arrangements not yet decided for Cardiff.
Confirmed that Welsh Government secondary legislation would be required before implementat...

Cardiff Council Newsroom Check wider coverage