Edinburgh may become the first area in Scotland to charge companies for allowing employees to park at work in a bid to cut congestion and air pollution.

A committee will examine a workplace parking levy "to set out the argument and rationale" for the overhaul.

In Nottingham, which in 2010 became the first place in the UK to introduce the levy, businesses are charged £402 each year per space and the money goes towards transport improvements, including extending the city's tram network.

Employers can choose to reclaim the cost of the levy from their employees. All organisations and premises with more than ten parking places are liable for the charge.

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The council would need permission from the Scottish Government to introduce the levy, with a route identified through an amendment to the Transport Bill.

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Transport and environment convener, Cllr Lesley Macinnes, told the Edinburgh Evening News: "We're still at a very early stage and our next steps will involve setting out an argument and rationale for introducing a workplace parking levy in order to seek the necessary legislative changes from the Scottish Government to introduce such a measure.

"However, we're confident that introducing a workplace parking levy would achieve many benefits - reducing the number of car journeys made into the city and in turn lowering congestion, improving air quality and encouraging active travel amongst all those who work here.

"This would very much be part of our broader ambitions to transform the way we use the city centre, including the introduction of a Low Emission Zone (LEZ) and proposals for city centre transformation."

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Conservatives opposed the council's stance on introducing the policy and asked for a balanced report on the positives and negatives of the levy.

It is hoped the levy would generate around £9 million a year to pay for improvements to Edinburgh's transport network, but council officers said the annual revenue could be as much as £15m.