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Mileage allowances on the rise

Over the last six years, the number of businesses using a mileage allowance for business travel has doubled.

Instead of a company-provided business car, increasing numbers of businesses prefer to pay a mileage allowance for staff to drive private cars on business.

In 2000, 9% of businesses provided business mobility in this way. In 2006 it had risen to 22%.

Given that 40% of businesses fail to check the conditions of private vehicles

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30 November 1999

Over the last six years, the number of businesses using a mileage allowance for business travel has doubled.

Instead of a company-provided business car, increasing numbers of businesses prefer to pay a mileage allowance for staff to drive private cars on business.

In 2000, 9% of businesses provided business mobility in this way. In 2006 it had risen to 22%.

Given that 40% of businesses fail to check the conditions of private vehicles – revealed in a travel survey by National Car Rental – it could leave business car managers open to duty of care prosecution.

The change in business provision is just one of a wealth of facts compiled by Nottingham Business School’s Professor Cooke in the BEN Book of Numbers.

The book is a hold-all of automotive statistics. It has been published by industry consultants BearingPoint. All proceeds from sales of the book go to the automotive charity BEN.

Six items on the Cooke book menu

  • If vehicle manufacturing was a country, it would be the world’s sixth largest economy
  • Fed up of congestion? No wonder. The number of cars in use in 1995 was 24.3m. By 2005 it had increased to 29.7m
  • Sill fed up with congestion? In the last 10 years the number of vans has increased by 100,000
  • BMW has become the sixth most popular business car manufacturer (up from ninth)
  • The Ford Focus was the most popular used car sold in 2006. In 2002 it was the Ford Escort
  • In 2006 Lex was the biggest contract hire and leasing company. Back in 2002 it was Lloyds TSB

Further information

New BEN Book of Numbers highlights private cars used on business

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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