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North Lincolnshire council to save £600,000 after mileage rate cut
Date: 14 August 2012 | Author: Tristan Young
North Lincolnshire Council is to cut the mileage rate it pays to staff using their private cars on council business by 7p a mile, to gain savings of more than £600,000.
The council is revising its payments structure and cutting the headline payment rate from 52p a mile to the HMRC-approved level of 45p a mile.
Nearly 2000 employees are affected by the changes, which are due to come into force on 12 November this year.
A council spokesman said: "Following cuts across the whole public sector, our focus is to avoid reductions in services to the public and to minimise job losses. In 2011/12 we spent £1.7m on casual and essential mileage and we feel that savings can be made in this area."
Approximately 900 staff classed as casual car users were paid 52p a mile, this will now reduce to 45p a mile.
A further 1000 workers classed as essential car users will now switch to the same 45p rate from being paid an annual £900 payment plus 40p a mile for the first 8000 miles followed by 14p a mile thereafter.
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