Purpose

To review the Council’s five
-year rolling Vehicle Replacement Programme (VRP) and make recommendations for
capital expenditure to continue to move to a modern fleet of commercial
vehicles and ensure that the Council has a resilient and cost-effective fleet,
as well as reducing its carbon emissions.

 

In May 2023, the Executive
approved a £3.8M rolling five-year Vehicle Replacement Programme for the Council’s
vehicle fleet, to be updated each Autumn to inform budget setting for the
following year and the Medium-Term Financial Strategy.

 

The 2023 Programme proposed the
replacement of 57 vehicles over the five years to 2028.  To date, 19 vehicles have been replaced at a
cost of £845,000.  Eight were new
vehicles, with the remainder used.  As at
the end of September 2024, two of the replacement vehicles were electric and
HVO is used in around one third of the vehicle fleet.

 

The 2024 Annual Review proposes a
new rolling five-year Vehicle Replacement Programme to 2029/30, estimating that
50 vehicles will need to be replaced at an estimated maximum cost of £4.68M.  All available replacement vehicle options
will be considered and assessed against estimated whole life costs, impact on
fleet carbon emissions and availability of capital budget.  The lifetime cost analysis, which takes
account of capital purchase and running costs over a 10-year period, highlights
that diesel vehicles remain the cheapest vehicle type at present for most of
our fleet.

 

The recommended Vehicle
Replacement Programme will reduce the carbon emissions of the Council’s fleet
in line with the Council’s aspiration to become net zero by 2030.  Subject to other decisions, the five new food
waste vehicles will be duelled with HVO when the service commences in March
2026, which will effectively negate the carbon impact of these additional fleet
vehicles.  The use of HVO in the whole
diesel fleet to reduce carbon emissions needs to be balanced against the
additional cost.

Decision

RESOLVED that the Executive:

 

(a)  endorses
the 2025-2030 Vehicle Replacement Programme;

 

(b)  agrees
to take forward a sum of £693,900 for consideration in the General Fund capital
budget for 2025/26, funded from capital reserves, for the purchase of nine
vehicles; and

 

(c)  agrees
to take forward a sum of £83,800 for consideration in the Housing Revenue
Account (HRA) capital budget for 2025/26, funded from capital reserves, for the
purchase of two vehicles.