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The front page news story on the 23 July issue of BusinessCar blew the cover on a simultaneous reaction from a swathe of local authorities, all of which, as part of cost-saving measures, had wised up to the higher mileage rates (i.e. those employees being paid in excess of 45p a mile for the first 10,000 miles) and car allowances paid to some public sector drivers using their own cars for business trips.
The moves, and similar cost-saving measures impacting grey fleet Government workers, have created a furore among employees and unions, and made life difficult for employers.
This comes following regular reports of public sector organisations moving more towards rental or pool car solutions in an effort to better manage their business car operations and save money, and noises from the occasional politician that rental is a more sustainable alternative. While we'd never claim that grey fleet is dead, it certainly seems as though it is being increasingly viewed as, if nothing else, cost prohibitive. And if that argument against grey fleet has now percolated through to local authorities, then it stands to reason that its usage could be declining across the public sector as a whole.
So has the tide finally turned when it comes to the use of employees' personal cars for business trips? Nick Hardy, sales and marketing director at leasing firm Ogilvie Fleet, believes organisations are now waking up to the amount of money they're spending on mileage reimbursement.
"I'm not surprised people are looking at it and thinking, 'how much are we spending on this?'. It seems to me that there are very few rules in place.
"It's seen as an income boost in that environment and I wonder how far ingrained that is. That's the reason why costs are so high; it's so easy - too easy - to fill in a form and claim your 45p [or more]."
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