Nottingham's Workplace Parking Levy charge is to be increased next year.
The Nottingham City Council scheme is a form of congestion charge and the funds raised in the past were used to help fund the extension of the tram system.
The current charge, which runs until March 31, is £415, for employers providing 11 or more spaces.
This will be increased for the next charge period to £424.
The levy was introduced in 2012 and the charge is calculated when central government releases the retail price index, a measurement of inflation.
Councillor Adele Williams, Nottingham City Council’s portfolio holder for transport, said: "Offering people good, reliable alternatives to the car is key to keeping the city moving.
"The WPL has helped to support the growth of our public transport networks in Nottingham, expanding our tram network and redeveloping Nottingham Station.
"Currently, more than 40 percent of journeys into the city centre are made by public transport – well above the national average - and this is increasing year-on-year."
Money raised through the levy has also been used to help fund the redevelopment of Nottingham's train station and supports the Link bus network.
Employers who are part of the levy were notified of the increase on Thursday, December 20. Motorbike spaces are not included in the levy, a city council spokesman said.
Prior to the announcement of this year's increase, business leaders explained how it was important employers should be consulted on how the levy will be used.
But Scott Knowles, chief executive of East Midlands Chamber, did add at the time: "In the case of Nottingham, the tram has undoubtedly been a success for the city and – as consumer demands and habits change - forms a central part of the Nottingham’s broader plans as it looks to reinvent itself to be a destination where people can work, live and play.
"No city stands still and it’s essential that the experience of businesses continues to help shape political decisions as UK cities evolve."
To receive one WhatsApp message a day with the main headlines, as well as breaking news alerts, text NEWS to 07790 586202.
Then add the number to your phone contacts book as 'Nottingham Post'. Your phone number won't be shared with other members of the group.
