Highland Council cuts travel costs with new car club
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HIGHLAND Council has revealed significant cost and emissions savings by adopting a new business travel strategy that has seen the introduction of 35 Enterprise Car Club vehicles.
It is reducing the organisation’s reliance on employees using their own cars for work journeys, known as its grey fleet, and mileage claims.
In the last six months, the council saw average business road travel costs decrease by around a third when comparing the cost per mile of the car club to its employees' mileage reimbursement cost. The council estimates the change has seen it reduce its carbon footprint.
When the council began a review of travel 18 months ago, its grey fleet mileage was more than six million miles a year, at a cost of more than £2.2 million per annum.
Following the in-depth review, including partnering with Enterprise to analyse employee mileage in detail to determine how employees travelled and which offices needed dedicated vehicles based on-site, it is now running 26 dedicated car club vehicles.
The fleet includes four Nissan LEAF electric cars and the council is in the process of procuring additional plug-in hybrid and electric vehicles.
Overall, the council estimates that its review of staff travel, including switching to Enterprise Car Club, will reduce its annual grey fleet mileage by around 1.2 million miles over the course of 2018-19. The council is also reducing non-essential business travel, encouraging video conferencing and focusing on shared and public transport for service delivery where practical. It is also considering introducing Enterprise Car Club vans.
Councillor Allan Henderson, chairman of the council’s environment, development and infrastructure committee, said: “Our service delivery used to be hugely reliant on the grey fleet.
"While it was convenient from an employee perspective, it meant we had little or no control over what types of personal cars our employees were driving, whether they were fit for purpose, modern and safe for the journey. Keeping on top of whether our 3200 grey fleet drivers always had the correct level of business insurance was also a challenge.
“In addition, many staff were in bigger vehicles such as 4x4s due to the conditions in the Highlands, and so in many cases the mileage reimbursement rate barely covered their travel expenses and depreciation. Introducing Enterprise Car Club has been a hugely popular innovation for our employees, and it has also enabled us to control costs and reduce our carbon footprint.
“A comprehensive new approach to travel, underpinned by Enterprise’s car club, has transformed our business travel. Our staff can book and take the cars they need, either beforehand or on the day, and many no longer have to drive to work – so can walk, cycle or use public transport instead.
“It also means we now have control over all the previously unmanaged elements of business travel. We know employees are in safe, low-emission, well-maintained cars and can use the wealth of data provided by Enterprise to keep finding efficiencies and improving how, where and when our people drive for business. We can keep providing important local services and do so in a more cost-effective and sustainable way.”
Oz Choudhri, head of public sector at Enterprise, said: “This is an excellent example of how switching from grey fleet into a car club delivers immediate results.
“The grey fleet is a significant issue for both public and private sector organisations from several perspectives: cost, duty of care, liability and sustainability. A dedicated car club addresses all of these issues and is an increasingly effective option for employee travel.
“The Highland Council’s analytical approach to improving provision for business travel is a major factor in the immediate success of the car club. Combined with wider policies to reduce costs and emissions, such as technology to replace face-to-ace meetings and a new travel policy, the council has ensured a managed and progressive approach to business mobility.
"It’s an excellent example of how there are clear alternatives to the grey fleet that can yield immediate benefit.”
