A PERK which allows council staff in York to use vehicles owned by the authority for commuting is set to be axed.

New rules governing the use of City of York Council vehicles to allow employees to travel to and from their homes without paying for fuel have gone out for consultation after it emerged the annual cost to the taxpayer could be £150,000.

Council leader James Alexander said he had discovered the system after Labour took control of the authority in May.

A draft agreement on the issue says staff may now have to pay a mileage rate of 23p a mile between November and next April, with the rate rising by 3p over the following 12 months.

Charges for commuting mileage would be made on a monthly basis and deducted from the employee’s salary, and the right to use a council vehicle for commuting under previous arrangements would end.

"I previously expressed my concerns about learning the previous council had been using £150,000 a year of taxpayers' money to pay for some staff diesel costs to and from work for a number of years," said Coun Alexander.

"I am seeking to end this arrangement in order that this money be used to save essential council services and jobs."