Campaigners call for fairer deal on roads
YORKSHIRE businesses are being urged to lobby MPs to increase compensation for employees who use their own cars for work purposes.
The plea from the Institute of Directors Yorkshire and Humber comes as fuel prices in the UK continue to rise, with many commuters presently paying more than £1 per litre for unleaded petrol.
The IoD, which represents the views of businesses across the region, is campaigning for an increase in the Approved Mileage Allowance Payment (AMAP), which is set by HM Revenue and Customs at 40p per business mile. The rate has been set at 40p since 2002.
The IoD argues that as the cost of fuel has increased by almost 30% since 2002, the rate should stand at a minimum of 52p per business mile.
Nimble Thompson, regional chairman of the IoD in Yorkshire and Humber, said: “The current AMAP rate means that the average business user is losing £1,200 over every 10,000 authorised miles they complete every year.”
Mr Thompson said the 2007 budget had indicated that the structure of the AMAP system may be changed to promote environmentally friendly business travel, such as basing the rates on vehicles' individual C02 outputs.
He argued that if this strategy was implemented many business users could find that the rates they receive would be further reduced.
He added: “It is unacceptable that business users could face reduced AMAP rates as a result of the Government's green agenda. Failing to compensate business users accordingly is just one more example of government stealth tax so we are encouraging Yorkshire's business leaders to apply pressure to Downing Street to ensure this issue is adequately addressed in the 2008 budget.”
