The Workplace Parking Levy (WPL) is among a raft of new tax-raising powers that will be handed to local councils as part of today’s budget deal between the Scottish Government and the Greens.

Councils will also be given the power to introduce a “tourist tax,” which is also being led by the Capital through plans for a £2 a night charge.

In a video posted on Twitter following today’s Budget, city council leader Adam McVey said: “It (the WPL) will give the opportunity to look at ways of solving congestion problems and creating revenue we can invest in public transport, active travel and other public services.”

Edinburgh councillors have been pushing for a workplace parking levy for months.

The parking levy was initially considered at the city council’s Transport and Environment Committee in August last year.

The local authority has also submitted evidence to the Scottish Parliament Committee, stating there is a “strong case” for considering the WPL.

Expected benefits under the charge could include reduction in pollution levels, better journey times and investment in public transport.

The local authority says it would use income from the levy to pay for bus lanes, segregated cycle routes and pedestrianised areas, while tackling issues like air pollution, carbon emissions and private car use and traffic management.

In Edinburgh, no decision has yet been made on who the levy would apply to and how much the annual charge could be.

However, officials in Edinburgh have previously estimated that such a levy could raise between £9 million and £15m for the city.

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 10 parking places are liable for the charge.

Scottish councils will still need permission from the Scottish Government to introduce the charge, which could be achieved through an amendment to its Transport Bill.

The first stage of this bill is expected to be completed by March 1 this year.

The levy is backed by transport group Transform Scotland, which has said previously it could be applied to “workplaces as well as other types of premises”, raising the prospect of out-of-town shopping centres having to pay the levy to provide free parking to customers.

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Edinburgh moves step closer to charging businesses who let employees park at work