East Ayrshire Council will consider an increase to staff mileage payments to help with rising fuel costs after bosses were approached by trade unions.
The recommended increase to 45p per mile for the first 10,000 miles would remain tax-free.
However, it is lower than the unions’ request to go up to 60p per mile, 15p of which would be taxable.
The council had previously paid 45p per mile, before reducing this to the current 40p in 2016. It was revealed that a survey by Aberdeenshire Council had found East Ayrshire was the only authority of 17 which responded that did not pay 45p.
A report to the council’s cabinet on Wednesday states: “The council management team were approached by Trade Unions to review the current car mileage rate payable to staff for use of their own vehicle during the course of business, due to the increase in the current cost of living.
“In years prior to covid restrictions, the council’s spend on mileage was around £800k per annum. However, during 20/21 this dropped to around £400k and has increased to around £500k in 21/22.
“Around 1,000 people submitted a mileage claim last year, with 63 per cent of these claims coming from employees who work within the Health & Social Care Partnership.
“The Trade Unions have noted the general cost of living issues as justification for the increase, and in particular, the escalating cost of fuel.
“The price of fuel has increased because the price for crude oil, which is used to make petrol and diesel, has risen.
“The cost of a litre of petrol has increased by more than 16p in the past month, making the cost of filling a typical 55-litre family car nearly £9 more expensive.
“The average cost of diesel has gone up by more than 24p during the same period as detailed in the table below.”
The proposal would see the council pay the HMRC approved rate of 45p for the first 10,000 miles, then 25p per mile above 10,000 miles.
The move would cost £80,000, but officers say that the prevalence of hybrid working has reduced the amount of claims, meaning it can be covered within existing budgets.
Councillors will also hear that any payments higher than 45p would be taxable, increasing costs by around £320,000.
The report continued: “All Trade Unions welcomed this change and it has been agreed that this issue will be kept on the agenda for future discussion as appropriate.”
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