Decision details

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.

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.

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.

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.

Fleet and Depot Management/Operational Services: Largest impact, as this service will oversee procurement of new vehicles, coordinate replacement scheduling, manage asset disposal, and implement all day-to-day fleet operations related to charging and vehicle use.

Facilities/Infrastructure: Responsible for planning, executing, and maintaining the grid connection upgrades, charging infrastructure, cable routing, and depot modifications necessary for electrification - including any site expansion or civil works required.

Procurement: Involved in all vehicles, charger, and infrastructure acquisitions; ensures compliance with council and public procurement standards.

ICT/Digital Services: Required for the integration and management of smart charging system and software platforms to optimise vehicle and energy use.

Workshop: The workshop will need to evolve in terms of skills, knowledge and infrastructure as servicing and maintenance of zero-emissions vehicle become mainstream. This has potential benefits as we upskill and improve the workshop and may allow us to accommodate other public sector bodies vehicles, much as we do now.

Legal/Governance: Will review contracts, funding conditions, legal compliance with evolving regulation (including the ICE ban and relevant safety/building legislation), and governance arrangements of new asset management models or partnerships