Councils spend £5.7m on mileage rates for staff

This would make them among the most highly reimbursed local authority employees in the UK.

While the HM Revenue and Customs-approved level for mileage allowances was in 2009-10 40p per mile, the Taxpayers’ Alliance found that during that year, both Warwickshire County Council and Warwick District Council were paying staff 60p - a figure which went up to 65p for both authorities this year.

In total, the county council paid out £5.7 million of taxpayers’ money last year, while Warwick District Council paid out just over £300,000.

Stratford District Council was paying its staff 60p during 2009-10, but it has since reduced this to the approved 40p.

Guy Bates, of the Taxpayers’ Alliance, said: “Councils should focus their resources on protecting and improving the quality of their frontline services. They have a duty to use taxpayers’ money efficiently.

“They should reduce the amount they pay out in mileage rates. Not only will it save taxpayers’ money, it is also unfair that someone who is self-employed or working for most other organisations receives a tax-free payment of 40p per mile, while a council employee can claim back 25p a mile more.”

But Bob Perks, Warwickshire County Council’s head of human resources, said the council had made savings since the report was published.

He said: “We made a decision to cut our mileage costs two years ago and have already removed essential user lump sums and are phasing out higher mileage rates to 40p a mile. We were previously bound by national terms and conditions and so to make this change we had to give notice to all of our staff and renegotiate contracts.”

He added: “The number of miles travelled will naturally be higher for rural areas which have a much larger geographical spread in comparison to urban areas.”

Warwick District Council’s chief executive Chris Elliott claimed the report contained “factual inaccuracies” and said: “Offering mileage to our staff helps us avoid the much greater expense of maintaining a fleet of vehicles.

“We have identified potential negotiation for mileage rates to reflect reduced budgets, this yet to be agreed or published.”