Nottingham businesses are looking at passing on the Workplace Parking Levy to employees while others are considering leaving the city.
Derbyshire and Nottinghamshire Chamber members joined forces and threatened to hit MPs and councillors in the ballot box during a meeting at Boots HQ to discuss the issue.
From April 2010, companies will be taxed £185 a year on each parking space by Nottingham City Council, rising to £350 a year by 2013. The cash will be used to help pay for two extensions to the tram system.
Chris Adcock, operations director at ZF Great Britain Ltd, which has 165 staff in Lenton, said: "If a tax is passed to the employees then, what concerns us more than anything, this is going to hinder our recruitment in the future. If we don't pass the cost on to them, the whole thing does not work."
Joe Cavani, managing director of Edwin Loxley, a furniture manufacturer with 51 staff in Bulwell, said: "I think people who drive their cars into the city should pay. I am going to pass it on [to staff].
"I will give them a bonus a year early, so they get used to the money. Then when we are charged I will say, 'The council wants your money'."
Rachel Doar, environment officer at Experian, said: "We just don't feel the workplace parking levy is going to encourage people into greener ways of travel. Until the infrastructure is in place they are going to pay more and more to drive to work."
Richard Bonnello, partner at Page Kirk chartered accountants, said the company has been approached about outsourcing to foreign countries in the recent past and all avenues must be considered.
He said: "It is another nail in the coffin to recruiting locally. I think it will do huge damage to Nottingham."
Coun Graham Chapman, deputy leader of the Labour controlled city council, said most businesses will not be affected.
Coun Chapman said: "Nottingham is an expanding city and needs the tram to avoid congestion. Business want the tram and the two universities are very keen. The business parking has attracted two new investors, Specsavers and a hotel - both attracted by the prospect of the tram."
He criticised the chamber of commerce for taking the levy to the ballot box, adding: "The chamber is playing politics with the future of the city. I think future generations will thank us for what we are doing. We are taking a bold, hard decision."
A petition is being collected. Visit http://petitions.pm.gov.uk/NottinghamWPL/
Source: Nottingham Evening Post
More news in Nottinghamshire