After being frozen 15 years ago by then chancellor George Osborne under the coalition government, chancellor Rachel Reeves is now considering revisiting the excessively low rate of approved mileage allowance payment (AMAP) rates, currently set at 45p.

If rates had kept with inflation, the AA estimated the figure should be 67p per mile.

At Treasury questions in parliament earlier this week, there was a heated contribution from the MP for Oldham, with Treasury minister Dan Tomlinson acknowledging changes were ‘well overdue’.

MP Jim McMahon said: ‘The 45p a mile rate, set 15 years ago, is nowhere near the true cost of running a vehicle today, which was recently assessed at 67p a mile, and that was before fuel costs rocketed in the last week’.

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