A PROPOSAL to cut mileage rates for councillors and staff – which could have saved a cash strapped council almost a quarter of a million pounds – has been shelved.

Durham County Council will dip into its corporate contingencies budget instead after failing to make the saving.

The authority had been in discussions with union officials about reducing its mileage rate from 48p to 45p, having included it in its budget plans, but no agreement had been reached.

The failure to push through the proposal will provide further ammunition for the council's critics who have accused it of profligacy while at the same time making "cradle to grave" cuts.

The Northern Echo recently revealed plans by the authority to spend £38,000 on a new coffee shop at its headquarters at County Hall - days after cutbacks were announced to home to school transport and the introduction of a charge for the poorest pensioners to use a community alarm scheme.

One sticking point had been Unison’s insistence that any change to mileage should be across the board and also include a handful of senior managers who historically have received an increased rate.

Regional organiser Howard Pink said: “A lot of union members would have been adversely affected by this proposal.”

His colleague Neville Hancock, secretary of the Durham branch of Unison, said they were still open to talks with the council.

The proposal had been championed by the Liberal Democrat group on the council and would have saved £240,000.

But a briefing prepared for members of the council's cabinet confirmed the reduction will not be achieved.

It added: “Discussions with trade unions are continuing to agree changes in order that savings can be delivered from next year.”

In 2014/15 councillors alone claimed more than £80,000 in travel expenses, the majority of which related to mileage claims.

Liberal Democrat County Councillor Mark Wilkes said: “Most workers in County Durham would snap your hand off for a mileage allowance at this level.

“This is such a small reduction in reality and the saving would have potentially enabled the authority to employ more people.

“It seems to me that too many people [at the council] want their cake and to eat it also.”

Fellow Liberal Democrat County Councillor David Stoker said the council could potentially save millions more from the move.

He added: “Most public sector organisations do not offer more than 45p a mile to their employees because HMRC recommend that as the maximum.

“Indeed tax has to be paid on anything over that. Therefore I think most people would regard 48p as quite generous.”