Mileage to be cut to save £100,000

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City council staff could soon lose their mileage allowance as officers bid to make up to £100,000 a year in savings.

The council’s personnel committee has been asked to approve changes to vehicle allowances which would mean some members of staff would no longer be deemed ‘essential’ vehicle users and others ‘casual’ users.

Instead, a new single vehicle allowance scheme would remove any burden placed on an individual to use their own vehicle for business use.

The council has more than 100 employees whose posts are currently designated as essential car users.

The move could save the council up to £100,000 a year.

A report to the personnel committee says: “The council is facing significant financial challenges over coming years and, in line with many other public sector organisations, careful consideration is needed on how we can reduce our costs whilst maintaining effective service delivery.

“The proposals being presented to the personnel committee for approval are similar to those that have been adopted by other local authorities and across the National Health Service.”

Each service head has reviewed the posts in their service that are currently designated as “essential users” to determine the on going needs of each post.

As a result, there are a number of posts where the ongoing designation as an essential vehicle user is not warranted.

If given the green light at Tuesday’s meeting, the new scheme would begin in 2014 to give affected staff time to address any personal issues before the new arrangement comes into effect.

As part of the consultation process Unison representatives raised the point that in some cases employees who have been designated as essential users may have made a commitment to personal finance arrangements, so that they could provide a vehicle for business use.

It is recognised that, if the essential user status allowance is removed, some employees may not wish to use their own personal vehicle for business use, and no employee under the proposed arrangement will be under any obligation to do so.