URL: https://moderngov.fareham.gov.uk/ieDecisionDetails.aspx?ID=2709

Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To review the Council’s five-year rolling Vehicle Replacement Programme (VRP) and make recommendations for capital expenditure to ensure that the Council has a resilient and cost-effective fleet, as well as reducing its carbon emissions.   In May 2023, the Executive approved the Council’s first rolling five-year Vehicle Replacement Programme for the Council’s vehicle fleet.  This would be updated each Autumn to inform budget setting for the following year and the Medium-Term Financial Strategy.   The 2025 Annual Review proposes a new rolling five-year Vehicle Replacement Programme to 2030/31, estimating that 47 vehicles will need to be replaced at an estimated maximum cost of £4.73M.  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 costs 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.  The five new food waste vehicles will be fuelled with HVO when the service commences in March 2026, which will negate the carbon impact of these additional fleet vehicles and, although the use of HVO in the whole diesel fleet to reduce carbon emissions needs to be balanced against the additional cost, an additional seven vehicles will be moved to HVO in April 2026.

Content: To review the Council’s five-year rolling Vehicle Replacement Programme (VRP) and make recommendations for capital expenditure to ensure that the Council has a resilient and cost-effective fleet, as well as reducing its carbon emissions.   In May 2023, the Executive approved the Council’s first rolling five-year Vehicle Replacement Programme for the Council’s vehicle fleet.  This would be updated each Autumn to inform budget setting for the following year and the Medium-Term Financial Strategy.   The 2025 Annual Review proposes a new rolling five-year Vehicle Replacement Programme to 2030/31, estimating that 47 vehicles will need to be replaced at an estimated maximum cost of £4.73M.  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 costs 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.  The five new food waste vehicles will be fuelled with HVO when the service commences in March 2026, which will negate the carbon impact of these additional fleet vehicles and, although the use of HVO in the whole diesel fleet to reduce carbon emissions needs to be balanced against the additional cost, an additional seven vehicles will be moved to HVO in April 2026. RESOLVED that the Executive:   (a)  endorses the revised Vehicle Replacement Programme for 2026-2031 as detailed at Table 1 of the Tabled item;   (b)  agrees to take forward a sum of £1,124,400 for consideration in the General Fund capital budget for 2026/27 funded from capital reserves, for the purchase of 9 vehicles;   (c)  agrees to take forward a sum of £122,700 for consideration in the Housing Revenue Account (HRA) capital budget for 2026/27, funded from capital reserves, for the purchase of 3 vehicles; and   (d)  supports the proposal to run seven additional vehicles on HVO, saving an estimated 137 tCO2e a year and at an additional cost of £6,600.  

Date of Decision: November 3, 2025