The Government's proposal for a workplace parking levy has been branded an extra tax on jobs by the Engineering Employers South.

David Seall, EEF chief executive, said: "The proposals, as they currently stand, present a further threat to competitiveness at a time when manufacturing businesses are already facing a wider range or pressures.

"For example, a company which has 1,880 parking spaces would pay £470,000 based on a workplace parking levy of £250 per space."

The EEF has proposed that if transport charges are necessary, then a flexible system of road-user charging focusing on all members of society would be more appropriate.

But this would only be acceptable to them once significant improvements were made in transport infrastructure.

Mr Seall said: "Manufacturing industry, already burdened by the strength of sterling, higher interest rates and restrictive employment legislation, finds it hard to believe that the Government is planning another tax.

"This proposal amounts to an extra tax on jobs.

"It discriminates against those companies which employ skilled staff from a wide area and who have no choice but to drive to work."