Link mileage allowance to cost of fuel

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Link mileage allowance to cost of fuel

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The maximum tax-free mileage allowance does not reflect the cost of fuel, which is considerably higher now than when the allowance was set (despite having been adjust slightly upwards recently). A mechanism should be established to link the allowance each year to the average retail price of petrol automatically. Morever, the ratio of the allowance per mile to the cost of a litre of petrol should be raised considerably from its current level.

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