Minister hits out over councils’ car perks

The criticism came after research found that local authorities last year paid as much as 65p a mile for employees to use their own cars for work.

In Yorkshire, Leeds, Hull and Bradford paid the top rate, while East Riding and York both paid 52.2p per mile.

However North Yorkshire came out highest in Yorkshire and in the top 20 in the country for the amount paid out for mileage – £5.6m in 2009-2010 – according to the survey by campaign group the Taxpayers’ Alliance.

The average rate across the UK was 56.4p in 2010-11 – well above the HM Revenue & Customs-approved level at the time of 40p – meaning that a typical council worker would have ended up £164 better off for every 1,000 miles driven.

A Taxpayers’ Alliance spokesman said: “Barnsley and Wakefield are paying out 40p a mile, while other councils such as Leeds, Bradford and Hull and even North East Lincolnshire are paying 65p, so there is a discrepancy.

“All the councils should be paying at the HMRC rate, especially at a time when services are being reduced.

“In just the case of Hull we estimate the council paid out around £1m more in one financial year than it needed to if it had stuck to the standard 40p per mile.”

They found that councils paid staff a total of £427m in mileage allowances in 2009-10, up from £402m in 2008-09.

Local Government Minister Bob Neill said: “Town halls are wasting millions of pounds of taxpayers’ money by these preferential and privileged motoring perks.

“Simple changes like clamping down on these subsidises will help councils drive down unnecessary costs and protect front-line services.”