Councillors to consider increase to staff mileage payment to address rising fuel costs

East Ayrshire Council will take into account a rise to workers mileage funds to assist with rising gas prices after bosses had been approached by commerce unions.

The advisable improve to 45p per mile for the primary 10,000 miles would stay tax-free.

Nevertheless, it's decrease than the unions’ request to go as much as 60p per mile, 15p of which might be taxable.

The council had beforehand paid 45p per mile, earlier than decreasing this to the present 40p in 2016. It was revealed that a survey by Aberdeenshire Council had discovered East Ayrshire was the one authority of 17 which responded that didn't pay 45p.

A report back to the council’s cupboard on Wednesday states: “The council administration workforce had been approached by Commerce Unions to evaluation the present automobile mileage fee payable to workers to be used of their very own automobile in the course of the course of enterprise, as a result of improve within the present price of dwelling.

“In years previous to covid restrictions, the council’s spend on mileage was round £800k each year. Nevertheless, throughout 20/21 this dropped to round £400k and has elevated to round £500k in 21/22.

East Ayrshire Council's headquarters on London Street, Kilmarnock (Picture: Kilmarnock Normal)

“Round 1,000 folks submitted a mileage declare final 12 months, with 63 per cent of those claims coming from workers who work throughout the Well being & Social Care Partnership.

“The Commerce Unions have famous the final price of dwelling points as justification for the rise, and particularly, the escalating price of gas.

“The worth of gas has elevated as a result of the value for crude oil, which is used to make petrol and diesel, has risen.

“The price of a litre of petrol has elevated by greater than 16p prior to now month, making the price of filling a typical 55-litre household automobile almost £9 costlier.

“The typical price of diesel has gone up by greater than 24p throughout the identical interval as detailed within the desk beneath.”

The proposal would see the council pay the HMRC permitted fee of 45p for the primary 10,000 miles, then 25p per mile above 10,000 miles.

The transfer would price £80,000, however officers say that the prevalence of hybrid working has decreased the quantity of claims, which means it may be lined inside current budgets.

Councillors may even hear that any funds larger than 45p can be taxable, growing prices by round £320,000.

The report continued: “All Commerce Unions welcomed this modification and it has been agreed that this challenge will probably be saved on the agenda for future dialogue as acceptable.”

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