Councils across Tayside and Fife spent nearly £7 million in a year on employee mileage allowances, and unions are pressing for a hike in payments.
Angus, Dundee, Fife and Perth and Kinross have frozen their mileage rate at 40p per mile over the last three financial years, in line with the rate recommended in 2002 by Her Majesty’s Revenue and Customs (HMRC).
Fife’s total bill for mileage in 2009-10 was £3,650,263, Angus paid £1,175,863 over the same period, Perth and Kinross paid out £1,368,597 while Dundee City Council by comparison only paid £676,424.
In the 2011-12 budget, Chancellor George Osborne increased the HMRC mileage allowance recommendation to 45p a change Angus Council has already made.
Public sector union Unison is pressing for Dundee City Council and Perth and Kinross to follow suit and increase their allowances accordingly.
Unison regional officer Rory Malone said, “This is historical since 1996. There have been debates over the years and we are putting it on the agenda of the next management trade union meeting. We want to push for the 45p given the increase in fuel prices.”
A spokeswoman for Angus Council said, “The council’s business mileage rate is based on HMRC guidance. It has therefore been 40p per mile for some time.
“That rate increased to 45p per mile on April 6, reflecting the increase in the rate announced in the government’s budget.”
A spokesman for Dundee City Council said, “The city council has not yet made a decision to follow current HMRC guidelines. This is under discussion.”