Oral Answers to Questions

Dan Jarvis Excerpts

Tuesday 15th November 2022 Commons Chamber

[Jeremy Hunt]

We know that all economic forecasts are inaccurate, but that does not mean that it is better not to have a forecast than to have one. In defence of the OBR, I would say that its forecasts are more accurate than the Government forecast that we used to use before it.

[Dan Jarvis (Barnsley Central) (Lab)]

10. If he will make an assessment with Cabinet colleagues of the potential merits of reviewing HMRC mileage allowance rates to promote retention and recruitment in the public sector.

[The Exchequer Secretary to the Treasury (James Cartlidge)]

The Government keep the approved mileage allowance payment rate under review. As the rate is set using an average, it is more appropriate for some drivers than for others. Employers, including public sector employers, can agree to reimburse a different amount that better reflects their employee’s circumstances.

[Dan Jarvis]

Petrol costs are up by a third since January, but mileage rates for keyworkers have now been frozen for a decade. That means, for example, that midwives attending home births, social workers safeguarding vulnerable children and palliative nurses providing end-of-life care cannot afford in many cases the petrol they need to do their jobs. Will the Minister look to increase the mileage allowance payment rates?

[James Cartlidge]

The hon. Gentleman makes a fair point. I think we are all conscious of the general increase in costs faced by keyworkers and all our workers, but let me make this point about the specific HMRC-approved mileage allowance payments rate. He will appreciate that, ultimately, it is there as an administrative convenience for both employers and employees. The employer can choose to pay more, though of course they would have to check the tax impact with the employee. We do sympathise about the cost of fuel, but that is why we took that crucial measure in the spring statement to cut the rate of duty on petrol and diesel by 5p a litre for 12 months. That is worth £2.4 billion for everyone who uses an internal combustion engine, whether in the public or the private sector.