Purpose

To report seek Cabinet approval to adopt the
Fleet Renewal and Infrastructure Improvement Strategy, aligning
with the Corporate Plan 2023–2028, Climate Strategy and
Building Energy Strategy. The strategy responds to the Council's
net zero commitment by 2040 and the UK Government's vehicle
phase-out requirements (petrol and diesel cars and vans by 2030;
non-zero-emission HGVs by 2040). With fleet emissions representing
36% of the Council's carbon footprint, this transition is essential
to achieving net zero targets.
 
To present a phased delivery model
(2025–2035): grid upgrades and charging infrastructure
(2025–2028), accelerated vehicle roll-out (2028–2031),
and full fleet transition from 2031 onwards. Approval is sought for
approximately £600,000 in infrastructure capital investment
and delegation of authority to explore commercially viable
opportunities linked to depot infrastructure or fleet operation to
support long-term financial sustainability. Vehicle capital
expenditure will be managed through existing fleet replacement
programmes with annual business case approvals.

Decision

The Cabinet has
 
(1) 
adopted the Fleet Decarbonisation Strategy as the strategic
approach to transition the Councils fleet to net zero emissions in
response to the Council's Climate Strategy commitments and the UK
Government's confirmed phasing out of new petrol and diesel vehicle
sales (2030) and non-zero-emission HGVs (2040), ensuring alignment
with the Corporate Plan 2023–2028, Climate Strategy, and
Building Energy Strategy;
 
(2) 
approved the phased delivery model and implementation plan
(2025–2035) as set out in the HDC Fleet Programme Report
(Appendix 1), including:
 
· 
Phase 1 (2025–2028): Grid upgrade to 800–850kVA and
modular charging infrastructure;
 
· 
Phase 2 (2028–2031): Accelerated vehicle roll-out aligned
with business case viability; and
 
· 
Phase 3 (2031 onwards): Completion of full fleet transition to
zero- emission vehicles to deliver a modern, resilient, and
cost-effective low-carbon fleet.
 
(3) 
approved the enabling infrastructure capital investment of
approximately £600,000 for depot grid upgrade, trunking and
cable installation, and the incorporation of this figure for budget
setting for the MTFS from 26/27, noting that this investment
represents a long-term enhancement to Council assets regardless of
future service arrangements including Local Government
Reorganisation (LGR);
 
(4) 
noted that vehicle capital expenditure over the programme period
(2025–2035) will be managed through the Council's existing
fleet replacement programme and standard budget-setting cycles,
with individual business cases approved annually by the Corporate
Director of Finance (Section 151) Officer and Corporate Director
for Place in accordance with the established Medium-Term Financial
Strategy (MTFS) financial governance process; and
 
(5) 
delegated authority to the Corporate Director for Place, in
consultation with the relevant portfolio holder(s), to explore and
develop commercially viable opportunities linked to depot
infrastructure, fleet operations, or renewable energy generation
that support long-term financial sustainability.

Reasons for the decision

The recommendation of approving the Fleet
Renewal and Infrastructure Improvement Strategy is essential for
HDC to meet strict national legislation on petrol and diesel
vehicle sales and ensure ongoing operational reliability and
ensuring long-term service resilience. Critically, the fleet
decarbonisation programme supports the Council’s net zero
target by 2040, cutting carbon and improving local air quality,
with clear co-benefits for community health and environment. Early
action minimises compliance risks and demonstrates strong local
leadership in sustainability.

Alternative options considered

Do Nothing - With the UK’s internal
combustion engine (ICE) ban set to start in 2030, continuing solely
with HVO risks escalating costs and threatens future fleet
viability. From 2030, new HVO-compatible vehicles cannot be
purchased, limiting HVO’s use to existing assets. Delaying
action also raises the risk that essential depot power upgrades may
become unattainable if growing local demand secures grid capacity
first. This approach exposes HDC to operational, financial, and
regulatory risks as transition options narrow and compliance
becomes more expensive.
 
Delay infrastructure upgrade - Delaying the
infrastructure upgrade until after LGR is possible, but doing so
makes it much more likely that local development or reallocation of
resources will result in the depot losing access to the necessary
grid capacity. If other developments secure available power first,
the cost and feasibility of upgrading later could be significantly
reduced, limiting the council’s ability to transition the
fleet when needed. The grid connection needs to be upgraded to
around 800-850kVA as soon as possible to allow for the transition
to take place in line with the programme.
 
Exploring external partnerships - Shared
infrastructure for fleet charging or service delivery may offer
economies of scale and flexibility, but it introduces long-term
risks—especially as organisational priorities, boundaries, or
funding arrangements shift during or after Local Government
Reorganisation. Changes in governance or priorities can destabilise
shared service agreements, disrupt access to depot infrastructure.
Over time, evolving partner needs may reduce the control and
strategic alignment, impacting costs, operational resilience, and
service quality if arrangements no longer fit the either partners
requirements.