Council consider mileage payrise

East Ayrshire Council will consider an increase to staff mileage payments to help with rising fuel costs after bosses were approached by unions.

The recommended increase to 45p per mile for the first 10,000 miles would remain tax-free.

It is lower than the unions’request to go up to 60p per mile, 15p of which would be taxable.

The council previously paid 45p per mile, before reducing this to the current 40p in 2016. It was revealed a survey by Aberdeenshire Council had found East Ayrshire was the only authority of 17 which responded that did not pay 45p.

A report to the council’s cabinet on Wednesday states:“The council management team were approached by Trade Unions to review the current car mileage rate payable to staff for use of their own vehicle during the course of business, due to the increase in the current cost of living.

“The price of fuel has increased because the price for crude oil, which is used to make petrol and diesel, has risen.

“The cost of a litre of petrol has increased by more than 16p in the past month, making the cost of filling a typical 55-litre family car nearly £9 more expensive.“

The proposal would see the council pay the HMRC approved rate of 45p for the first 10,000 miles, then 25p per mile above 10,000 miles.

The move would cost £80,000, but officers say that the prevalence of hybrid working has reduced the amount of claims, meaning it can be covered within existing budgets.

Councillors will also hear that any payments higher than 45p would be taxable, increasing costs by around £320,000.