GPSJ - SPRING 2025 - Flipbook - Page 28
GPSJ
LOCAL AUTHORITY & COUNCIL
Flexible fleet models offer councils
a route to vital savings
Short-term vehicle leasing could reduce costs, cut emissions and boost resilience as councils face a £2.3bn
funding gap
UK local authorities are facing
a projected funding shortfall of
more than £2 billion in 2025/26,
prompting urgent calls for
innovative cost-saving measures.
One area for consideration is 昀氀eet
management, where switching
to 昀氀exible leasing models could
o昀昀er councils a practical way to
reduce costs, increase operational
e昀케ciency, and manage risk.
The Local Government
Association (LGA) has forecast a
£2.3 billion gap in council 昀椀nances
in England for the coming year,
rising to £3.9 billion by 2026/27.
A combination of In昀氀ation, wage
pressures, and surging demand
for services such as adult social
care, special educational needs
and homelessness support is
driving many councils to the
brink. This comes despite the
Government’s Local Government
Finance Settlement for 2025/26
providing a 6.8% increase in cash
terms, totalling over £69 billion.
With nearly one in four councils
expected to apply for Exceptional
Financial Support to balance
their budgets, local authorities
are being forced to consider all
options. Flexible 昀氀eet leasing
is emerging as a pragmatic
alternative to traditional vehicle
procurement and long-term lease
models.
Against this backdrop, every
line of the budget is being
scrutinised. Traditional vehicle
procurement and ownership tie
up capital, pile on maintenance
bills, and lock councils into 昀椀xed
lifecycles that can quickly become
misaligned with demand.
Fleet company, FlexAuto,
estimates that local authorities
can reduce 昀氀eet operating costs
by up to 20% through shorter,
fully maintained leasing contracts,
with the added bene昀椀t of aligning
with carbon reduction goals by
transitioning to low- or zero-
28
emission vehicles without upfront
capital expenditure.
Under traditional models,
councils often maintain legacy
昀氀eets with high maintenance
costs, ine昀케cient fuel usage, and
poor emissions performance. In
contrast, 昀氀exible leasing o昀昀ers
access to newer, greener vehicles
on shorter-term agreements,
often monthly, that include
maintenance, servicing and
breakdown cover.
The approach reduces
exposure to unexpected repair
costs and capital risk while
enabling 昀氀eet managers to rightsize their operations in real-time.
Beyond cost savings and
green credentials, 昀氀exible 昀氀eets
bolster operational resilience.
In emergency scenarios, 昀氀ood
response, heatwave welfare visits
or unexpected service demand,
昀氀eet operations can quickly top
up vehicle numbers without drawn
out procurement. Conversely, in
quieter months, they can return
surplus units, avoiding idle asset
costs.
The 昀氀exibility o昀昀ered by monthly
leasing is especially relevant
as councils work to deliver
services amid sta昀昀 shortages,
vehicle downtime, and the
unpredictable demands placed on
departments such as highways,
environmental services and adult
social care transport. Additionally,
streamlined administration means
a single invoice covers all vehiclerelated expenses, allowing inhouse teams to redirect time and
resources toward core service
delivery.
Karl Howkins, managing
director of FlexAuto, a provider
of 昀氀exible 昀氀eet leasing, said:
“Councils need solutions that
respond to both 昀椀nancial
pressures and service
requirements. A 昀氀exible leasing
model allows them to manage
GOVERNMENT AND PUBLIC SECTOR JOURNAL SPRING 2025
risk, increase vehicle uptime,
and reduce costs, and all
without locking into long-term
commitments that may no longer
be viable.
“It also gives them the agility to
adapt to seasonal or emergency
demand, the ability to trial lowemission vehicles without capital
outlay, and full cost visibility
through all-inclusive pricing. Fleet
transformation may not close the
£2.3 billion gap on its own, but for
services where vehicles are critical
to delivery, 昀氀exible leasing o昀昀ers a
viable and immediately actionable
way to reduce cost, manage
demand, and strengthen 昀椀nancial
resilience.”
FlexAuto’s analysis suggests
that fuel e昀케ciency also improves,
as a modern, regularly refreshed
昀氀eet lowers per mile energy
costs. Decarbonisation is a key
factor for councils. Under 昀氀exible
leasing, upgrading to low or zero
emission vehicles becomes a by
product of standard 昀氀eet renewal,
removing the need for separate
capex bids to replace diesel vans
or cars. Councils can pilot electric
vehicles in higher mileage roles,
measure total cost of ownership
in real time, and then scale up or
down accordingly.
Backed by the Peter Vardy
Group, FlexAuto o昀昀ers ultra昀氀exible leasing solutions with a
wide selection of cars and vans. It
provides cost-e昀昀ective access to
vehicles without the need for longterm contracts. Its all-inclusive
packages cover maintenance
and support, giving customers
a straightforward alternative to
ownership. At the core of its
proposition is a commitment to
sustainability, helping individuals
and businesses transition to
cleaner transport options with
minimal hassle.
Facing historic 昀椀nancial
headwinds, councils cannot
a昀昀ord to leave 昀氀eet ine昀케ciencies
unchallenged. By shifting from
capital intensive ownership or
rigid long term leases to agile, all
inclusive monthly contracts, local
authorities can unlock savings,
meet net zero targets more cost
e昀昀ectively and build a more
resilient service infrastructure,
without large upfront spends.
Flexible leasing is not a silver
bullet for a £2.3 billion shortfall,
but it is a practical, immediately
actionable lever in the race to
safeguard vital public services.
