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Politics in the Royal Borough of Windsor & Maidenhead

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    David Burbage MBE was Leader of the Royal Borough of Windsor and Maidenhead Council from 2007-2016. This blog : Promoted by Geoff Hill on behalf of David Burbage and all other Windsor and Maidenhead Conservative candidates, all of 2 Castle End Farm, Ruscombe, Berkshire RG10 9XQ
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Council Mileage Perk exposed by TPA

Posted by davidburbage on April 14, 2011

Windsor and Maidenhead are one of the minority 80 Councils in the country that follow HMRC mileage rates.

Some others pay up to 87p per mile – a big taxable perk for their officers.

Now, with the price of petrol rocketing and increasing almost daily, the timing by the TPA probably isn’t great, as anyone on the HMRC rates who drives in their own vehicle on behalf of the community will know (including councillors at RBWM); but certainly over the last few years the excuse of paying over the HMRC rate has not been a particularly tenable one.

Yet, (though without factoring in the cost of wear and tear), the £6 gallon at a 35 mpg rate still works out at just 17p per mile cost. Stealing from an internet forum  – and I know everything on the internet can’t be trusted, but this sounded reasonable and better than nothing – I find

I kept my last car, a 98 Mondeo 1.8 Estate for near on exactly 3 years, it was 10 year old with 122k when I bought it and was sold on at 166k still running brilliantly.

 I keep a spreadsheet with all costs and petrol usuage, and my costs worked out to be 7p/mile for everything excluding petrol costs (purchase cost, all servicing, repairs, tyres, consumables, tax, insurance and this was then offset by the final resale value). The fuel cost over this time was 11.6p/mile at a typical mid to high 30’s MPG throughout this time. Therefore my total running cost over 3 yrs/45k miles was just under 19p/mile.

 Hopefully this information will be of some use as a ballpark reference point for people driving cars of similar age/size/mileage.

The typical council 65p rate – which many councils are on – is something that the Local Government Employers have negotiated – clearly getting a better deal for local government staff than available in much of the private sector, all at taxpayers’ expense. I suppose that’s part of the problem with the LGA – it does tend to look after the interests of the local authorities themselves, rather than those of the residents who elect them (and have to pay the bills).

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4 Responses to “Council Mileage Perk exposed by TPA”

  1. Phil Sage said

    David – all other things being equal a £10,000 car would depreciate by 20% per year or £6000 over the 3 years quoted at 45,000 miles would add £0.13p or a £20,000 car £0.26p meaning even with the capital cost the £0.65p is still extremely generous as “compensation”.

  2. Geoff Low said

    The last time I was personally worried about this there was an arbitrary HMRC limit of 40p per mile, anyone paid in excess of this was taxed on it as a perk. Is this not now the case?

  3. davidburbage said

    It is taxed as a perk, which is why the TPA are pointing out the cost to the public purse of the high per mile payments at many local authorities.

  4. Geoff Low said

    So, one bit of government decides what a ‘fair’ rate is, another bit of (local) government decides they are going to ignore that and pay more, and then a third bit of government takes some of the money back. Sounds like 2 of the above 3 tasks are superfluous, wonder if the BBC will feature it in their next feature on ‘the cuts’?

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