Mileage rates clash for council and union

North Lincolnshire Council wants everyone to be on the HM Revenue & Customs-approved tax allowance rate of 45p a mile – as are most private sector workers.

“Essential” car users at the council can claim nearly £1,000 a year, with most claiming the upper rate of 53p a mile.

But the trade union Unison says staff will be “subsidising” the council every time they use their car for work and it is not fair on the back of a three-year pay freeze. They also say the council made a windfall from not giving staff a pay increase of £1.7m.

The union said: “The council have already saved 70 per cent more money on staff costs than they said was required and this unreasonable change will severely damage services to many vulnerable client groups.

“The council’s new strapline is ‘One council, putting our customers first.’ This latest move by NLC toward their own staff and customers makes a mockery of that statement and Unison is urging them to think again about this and withdraw their notice.”

Cabinet member Rob Waltham said councillors’ mileage allowances were cut to 45p last May when they took power, adding: “Members of the public won’t feel sympathetic when all we are asking is that they pay the same mileage rate as everyone else.”

But Brigg and Goole MP Andrew Percy said the union had “to get real”. He said: “I hope union members will ignore the union’s leadership who seem intent on an argument. At the end of the day local Government is strapped for cash and they either make savings or they will have to sack more people.”

Last year Local Government Minister Bob Neill said millions of pounds were being wasted by “preferential and privileged motoring perks.”