Car allowances to stay for two years (From Tewkesbury Admag)

Car allowances to stay for two years

8:10am Tuesday 20th February 2007 in News By Peggy Clatworthy

Senior officers at Tewkesbury Borough Council are to keep their car allowances costing the council £350,000 a year, for a further two years.

The 184 officers are entitled to an allowance. Of these 53 get an annual £3,000 to £3,500 lump sum. The others get a mileage allowance of between 7.5 and 8p per mile, which is taxable The scheme was introduced in 1990 in an attempt to make recruiting and keeping senior and middle management easier The scheme is normally renewed every three years, and members of the Resources and Corporate Government Committee who discussed it last week are recommending that it run for another two years.

They want to see it frozen at its present level for next year, and then from April 2008 reduced by £500 per person, saving £9,000.

They are recommending that the scheme cease from April 2009 and be replaced by a National Joint Council Scheme, which includes a lower lump sum, but higher mileage rate and would save the council £150,000 a year.

Strategic director of resources, Pete Anthill said: "I think we are going to have some unhappy people, but we will cope with that."

Over the two years a job evaluation scheme will be carried out and a new pay and grading structure implemented.

The Inland Revenue recognised travel allowance is 40p per mile.

Withdrawing the car benefit lump sum and moving to the Inland Revenue rate of payment would save £250,000.

A final decision on the matter will be taken by the full council when it meets on February 22.