Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to (a) review the Approved Mileage Allowance Payment and (b) take fiscal steps to support employees and volunteers using their own vehicles in (i) rural and (ii) other areas.

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle, including employees in rural areas. These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses). The AMAP rates are not mandatory, and employers can choose to pay more or less than the AMAP rate. It is therefore ultimately up to employers to determine the rate at which they reimburse their employees. The AMAP rate also applies to volunteers, and organisations using volunteers also do not need to use the AMAP rate, and can choose to pay more or less than the AMAP rate.

In considering changes to the AMAP/simplified motoring expenses rates, the Government has to balance support for individuals with the responsible management of public finances, which fund our essential public services.

However, the Government recognises that transport is a major cost for individuals and families. At Spring Statement 2022 the Government announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre. In order to continue supporting all motorists, it will extend the 5p fuel duty cut, which is worth £100 to the average driver over the next year.

Like all taxes and allowances, the Government keeps the AMAP rate underreview, and any changes will be announced at a future fiscal event.