Mileage capture and fuel management specialists The Miles Consultancy (TMC) said the ever-increasing rate of fuel duty meant the actual cost of mileage for many cars was now higher than the government’s own advisory rates.

Chancellor Alistair Darling announced a two pence per litre increase in fuel duty from September in his Budget on April 22, to be followed by a further penny per litre increase scheduled for each year from 2010 to 2013.

TMC managing director Paul Jackson said: “TMC are getting more and more calls from corporate customers whose employees are not able to do business mileage without it costing them more than the advisory rates.

“Therefore this rise in duty from September will only increase the number of customers moving to our ‘mileage reimbursement at cost scheme’ ensuring the employee does not see the extra cost being paid for by them.”

He said the government’s plan for a ‘scrappage’ scheme — also announced in the Budget — where new car buyers get a £2,000 discount when scrapping an existing vehicle over ten years old, would not have a significant impact on the fleet sector.

He added: “This is of very little consequence to 99.9 per cent of fleets as both cars and vans are changed before they are five years old; also the manufacturers are already discounting vehicles considerably, so the real effect of the scheme will be that the government gives £1,000 and the industry will assign part of the previous discounts as their £1,000, so this is where £1,000 plus £1,000 equals £1,000, not £2,000.

“That said I’m sure the scheme will get rid of a few hundred of the most polluting and unsafe cars on the road today.”

For more information, contact The Miles Consultancy on 0870 141 6000 or visit www.themilesconsultancy.co.uk