Councils accused of 'wasting millions' in staff motoring perks

Published by Ross Macmillan for 24dash.com in Local Government and also in Central Government

Ministers have accused councils of wasting millions of pounds by giving staff "preferential" motoring perks.

The criticism came after research found that local authorities paid up to 65p a mile last year for employees to use their own cars for work.

Lancashire, Derbyshire, Cornwall and Warwickshire were among those offering the top mileage, according to the survey by campaign group the TaxPayers' Alliance.

The average rate across the UK was 56.4p in 2010-11 - well above the HM Revenue & Customs-approved level at the time of 40p.

That meant the typical council worker would have ended up £164 better off for every 1,000 miles driven.

The study found that local authorities paid staff a total of £427 million in mileage allowances in 2009-10, up from £402 million in 2008-09.

TPA director Matthew Sinclair said: "Ordinary motorists who are feeling the pinch will be shocked that council staff are getting such a generous deal for their mileage claims. It simply isn't fair.

"Some authorities have shown that it is possible to save millions by cutting back to the rate recommended by the taxman.

"This is a quick and painless saving that won't affect council services and will ease the burden on households, who've seen council tax double in the last decade."

Local Government Minister Bob Neill said: "Town halls are wasting millions of pounds of taxpayers' money by these preferential and privileged motoring perks.

"Every bit of the public sector needs to do their bit to pay off the budget deficit. Simple changes like clamping down on these subsidises will help councils drive down unnecessary costs and protect frontline services."

Jan Parkinson, managing director of Local Government Employers, said: "Many local authority employees, including home carers and social workers, use their own vehicles in the course of delivering vital council services to often vulnerable residents, like the elderly and disabled.

"Offering mileage to workers helps councils avoid the much greater expense of maintaining a fleet of vehicles.

"This report contains a number of factual inaccuracies, as well as being months out of date, failing to recognise that a large number of councils have already renegotiated lower mileage rates for 2011/12 to reflect reduced budgets.

"In addition, the guideline National Joint Council rate has been frozen this financial year at 2010/11 levels.

"This misleading report implies that those councils that use National Joint Council mileage guidance offer the casual rate of 65p per mile to all workers, when in fact that rate only applies to people who occasionally use their vehicle for work.

"A lower rate of 50.5p or less is generally offered to those who use their vehicles most frequently.

"As in the private sector each council agrees a remuneration package with workers independently, based on local circumstances and priorities.

"What is appropriate in a large rural constituency, where workers have to travel long distances to provide services, may not be appropriate in an inner city borough."