UK businesses could save around £1billion on fuel by managing their mileage, says a new report.

The Energy Saving Trust (EST) said companies across the UK could slash their mileage costs by up to 10% by introducing mileage management systems.

The technology works by using postcodes, which allows mileage to be calculated automatically and helps identify wasted journeys. The EST also claims accurately tracking journeys could cut around 2.4million tonnes of carbon emissions.

Paul Chater, Sales Director at Vertivia, a mileage management firm said: “This is a much more efficient and accurate way of logging mileage and removes any guesswork. For employers the system can provide improved HMRC compliance and detailed data breakdowns so they can consider alternative (potentially fairer and/or lower cost) reimbursement structures and manage their fleets more effectively. The result is a drop in fuel costs and also in carbon emissions.”

The message follows the EST’s suggestion last month that London’s drivers switching off their car engines when stationary could help them save £60million.