SCOTTISH Labour could be set on a collision course with local authorities over plans to oppose councils being given the power to raise revenue through a workplace car parking levy.

At the party conference in Dundee, delegates will debate and vote on a motion on Friday to reject the proposed new local tax.

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The levy will allow councils to introduce a workplace parking tax, with employers paying an annual tax to the council for every parking space provided for employees.

It was included in the Scottish Government’s Budget in February in exchange for Greens' support of the minority administration’s financial plans.

However, opposition parties at Holyrood claim that the move could cost staff hundreds of pounds each year if the charge is passed on to them.

The motion to the Scottish Labour conference has been submitted by the trade union ASLEF, and argues that there is not sufficient investment in Scotland’s public transport system. It calls on the government to address issues with ScotRail and Scotland’s bus network.

Scottish Labour Transport spokesman Colin Smyth said: “The SNP’s car park tax won’t deliver the investment our public transport system needs nor tackle the growing threat of climate change.

“It will hit lower paid workers hardest and will do nothing to plug the huge holes in council budgets which are facing £230 million more cuts this year, putting lifeline services at risk for some of the poorest in our communities.”

He added: “Labour supports more power to local government but this is a regressive tax on working people. The company boss will pay the same as the company cleaner. The exemptions made by the SNP mean a health board chief executive on over £100,000 a year won’t pay but a carer working for a charity on the minimum wage will.”

Scottish councils, through umbrella body Cosla, back local authorities being given more power to raise more revenue.

The National: SNP MSP George Adam said Labour were 'gearing up for a major conference debate to tear apart their own policy'SNP MSP George Adam said Labour were 'gearing up for a major conference debate to tear apart their own policy'

SNP MSP George Adam said the levy would allow councils to decide which policies work best locally. He added: “The only local authority anywhere in the UK that currently charges people to park at their work is Labour-run Nottingham council. Just two years ago Labour councillors stood on a manifesto to deliver these powers to local authorities. Now they’re gearing up for a major conference debate to tear apart their own policy.”

Scottish Greens MSP John Finnie said: “Labour’s shameless hypocrisy on this issue is embarrassing. Our proposals to devolve decision making powers to councils reflect measures the Labour Government took in England 20 years ago. The workplace parking levy has been introduced successfully by a Labour council in Nottingham, raising millions for public transport, while cutting emissions and air pollution. Labour included proposals for a workplace parking levy in its 2017 local authority election manifestos in Edinburgh and Glasgow.

“Yet, it has decided to ditch this good work... offering no solution to tackle the thousands of air pollution-related deaths that occur each year in Scotland. I hope the Labour MSPs who hog the Holyrood car park will declare an interest before speaking in the debate.”