A fleet of electric cars costing £500,000 is being bought by Sandwell Council, it has been revealed.

The authority plans to add 10 of the vehicles to its current bank of pool cars, with charging points also set to be installed across the borough.

The announcement comes after council leader Darren Cooper passed plans to reduce mileage payments for staff.

The authority had hoped to reduce the amount claimed by staff who use their cars for work reduced from 65p per mile to 40p in a bid to save £1.1 million.

However in his budget yesterday Chancellor George Osborne revealed “approved mileage payments” would increase to 45p per mile.

Councillor Cooper has agreed to adopt this figure as its new basic rate, which wipes out £100,000 of the cash it wished to save.

He said the new rates would come in “as soon as possible” after plans were passed at his Cabinet Action Team meeting yesterday.

Councillor Cooper said the reduced petrol expenses and the introduction of electric cars were all part of plans to save the authority money.

He said: “Despite the change we still expect to make significant savings, which will help us protect front line services.

“We will also invest in the purchase of electric cars to add to our pool cars and electricity charging points across the borough.

“This will cost us around half a million pounds, but it is investing to save in the long run.”

Sandwell faces £31 million of cuts in 2011/12, with 520 jobs to go.

Workers’ unions have warned of the possibilities of walkouts in the row over petrol claims.

They are now talking to workers about the potential strike action, claiming the plans are “effectively a wage cut”.