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Leeds City Council ‘gas guzzler’ mileage rate faces the axe
Council staff in Leeds could face a big cut in mileage expenses to help pay for park and ride schemes.
The council currently allows claims of up to 65p a mile for some workers who use their own vehicles for business purposes.
Liberal Democrat councillors are proposing that mileage rates are capped at a maximum of 45p – a move they claim would save the authority nearly £500,000.
They say that sum could be used to fund borrowing of up to £5m to pay for the creation of park and ride sites around the city.
The rate cut is one of a series of budget amendments put forward by the Lib Dems to be discussed by the council on Wednesday.
Coun Stewart Golton, Liberal Democrat group leader, said: “The Government uses a recommended rate of 45p for tax purposes. However the council allows payments of up to 65p per mile for gas guzzler type cars.
“If the council cuts its maximum payment back to 45p per mile this will save nearly £500,000. That money could be used to invest in park and ride schemes across the city, which will combat congestion and reduce costs for motorists.”
The city’s proposed trolleybus scheme includes park and ride and Coun Ryk Downes, leader of the Lib Dem Group on Metro, West Yorkshire’s Integrated Transport Authority, said: “While we all hope that government will finally go ahead with the scheme Leeds can’t afford to just sit back and wait. We’ve been doing that for too many years.
“Metro has plans for Park and Ride sites around the edge of the city. Putting savings from reducing payments for car travel towards developing park and ride is a sensible and rapid way forward in introducing more park and ride schemes for Leeds.”
Figures published last year revealed that local authorities across Yorkshire paid out a total of nearly £25m in mileage expenses in 2010-11.
The 65p rate has been criticised by local government minister Bob Neil as “preferential and privileged.”
The Lib Dems’ proposal comes in the week the council prepares to give the go ahead to swingeing spending cuts for the second year running as it battles to cope with government grant cuts and other spending pressures.
Council bosses are looking to save £55m in 2012-13 and among the measures planned are up to 400 job losses, grant reductions to arts organisations, a pilot of fortnightly black bin collections, meals-on-wheels price rises and a rise in junior swim prices.
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Comments
There are 14 comments to this article
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Leekerr
Wednesday, February 22, 2012 at 04:22 PMI worked for Social Services and then Adult Social Care for 20 years, I don't drive but my post would have entitled me to a mileage allowance if I had been able to drive. As it was, I spent so much time travelling that was never able to carry the same caseload as a worker who drove. So far as it was possible, most of my managers tried to ensure the bulk of my work was accessible by public transport. However I recall a 30 minute visit to High Royds which took almost 4 hours, I've had visits to see people who are placed in Harrogate or Wakefield which are just as lengthy, though the meeting are longer so it's taken five hours out of the working day. On a couple of occasions recently, I had to go to small villages on the far side of York and Doncaster; Those were each almost a whole day travelling. Then there are staff who have to transport children; is it realistic to take vulnerable children in car on a bus for contact visits or to paeditrician appointments? What about Mental Health Professionals who need to go out to assess someone's mental condition out of hours?
OWNMIND
Tuesday, February 21, 2012 at 01:04 PMI salute that idea Malcolm 17. If the council and its employees had to use the terrible public transport system they impose on us, they might actually get of their fat backsides and do something to rectify it!
s1234
Monday, February 20, 2012 at 10:23 PM@ollyjames - if 65p a mile isn't good enough (which is 20p per mile what more than most people get in real world), then why not use one of the leeds city car club cars? on 80 miles, even if you had it out for 6-7 hours, it would still be cheaper... Or is that £50 per day now sounding attractive again?
malcolm17
Monday, February 20, 2012 at 09:05 PMCouncil workers should use public transport and be issued with bus tokens, the council could negotiate a reduced rate for these tokens from the local bus companys,these tokens should only be used for during hours business this would save the council and the tax payer millions of pounds.
Neil T
Monday, February 20, 2012 at 07:05 PMstevem68 states "65p per mile . Jesus no wonder the council has no money. even at 20p a mile it is enough to cover mileage and wear and tear on the cars." Based on the following: Annual mileage 10000 Road fund £125 Depreciation £700 (based on a low value car) MOT and repairs £250 (conservative estimate) Insurance £220 (not including business cover) Petrol £6.14 per gallon you would need a car that achieves 85mpg to reach rates of 20p per mile. That does not include the costs of parking in Leeds in order to have your own private car available for the use of LCC, nor the extra cost to include business cover on your insurance. Bearing in mind that many council journeys are short urban trips, it is unlikely any vehicle will better 30mpg. At this rate, petrol alone will cost 20.5p per mile. Where do you buy your fuel? Let us know, the place will be overrun! As Graham Hudson states, casual users have no obligation to provide a vehicle for their employers convenience. Withdraw this facility, and let the council consider the provision of a number of pool cars for the use of council employees, or provide them with free travel on public transport to carry out their duties, together with the increased travel time and subsequent reduced efficiency. This may then require the employment of additional personnel to complete the workload. And steve68m, quote "if your a regular car user for the council get them to provide you with a company car which i bet would be much cheaper then paying 65p a mile." Do you REALLY think LCC would pay up to 65p per mile if it was cheaper to supply 5000 cars to LCC employees who receive regular user car allowances? And how many pool cars would need to be provided for the very many casual car users who put their private cars at the disposal of their employer in order to carry out their jobs efficiently. I think your maths and your logic is dramatically flawed.
octopusuk
Monday, February 20, 2012 at 05:28 PMThis is probably worth doing. But why didn't the LibDems do this when they ran the Council between 2004 and 2010?
ollyjames
Monday, February 20, 2012 at 05:25 PMIn answer to your question stevem28, no the council do not pay towards our car insurance, and yes we do have to pay extra for business insurance, and we also have to pay extra income tax!
whirlygig
Monday, February 20, 2012 at 03:29 PMRather than a knee jerk reaction I bothered to have a look at where these figures may have come from and found the AA produce car running costs tables. In 2011 the lowest running cost was 30.3p for a car costing up to £12,000 and doing 30,000 miles a year, based on insurance at £433 a year. Reduce mileage to 5,000 miles a year and it costs 68.62p a mile. A true gas guzzler could be as much as £2.38 a mile. There is no allowance in the tables for the increased insurance premiums you pay for business mileage. 45p is the tax free element permitted by HMRC (it was 40p until a couple of years ago) it is not an indication of how much a car costs to run. Anything over this rate is treated as income and taxed at the usual rates.
stevem28
Monday, February 20, 2012 at 02:47 PM65p per mile . Jesus no wonder the council has no money. even at 20p a mile it is enough to cover mileage and wear and tear on the cars.Not surprised they want to use there own car and OUR council taxes are paying them.And if your a regular car user for the council get them to provide you with a company car which i bet would be much cheaper then paying 65p a mile.Also are the council paying for the insurance on the cars too ? if not it is illegal to use your own car for business use unless insured for business..
OWNMIND
Monday, February 20, 2012 at 01:07 PMIts hypocrisy that a council so anti car that it’s road policy and lack of affordable parking in the city centre actually deters shoppers from the city centre and yet actually reward its own employees for driving bigger more uneconomical cars. Which is the biggest farce Park & Ride or Leeds City Council?
octopusuk
Monday, February 20, 2012 at 01:04 PMI don't work for the Council but I think that city centre based employees pay for parking if they park in a Council car park.
graham hudson
Monday, February 20, 2012 at 11:10 AMNo problems, all casual users must withdraw their vehicles immediateley and take it from there
ollyjames
Monday, February 20, 2012 at 09:58 AMI am a regular car driver for LCC, and we may get high mileage allowance, but dont forget the wear and tear on the car, new tyres exhaust etc. I regularly do more than 80 miles a day, and have put thousands of mileage on my car just doing my job!
Mark Paul
Monday, February 20, 2012 at 09:10 AMDont forget the free parking as well !
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