In recent years, fleets have faced faster, bigger changes than at any other time in recent history.
Some of these changes have been technological, such as the rise of alternatively fuelled vehicles. Some have been legislative, such as the introduction of a new company car tax regime. But there is one thread that runs through pretty much all of them – the shift towards cleaner motoring.
This is certainly true of one of the most significant changes facing British motorists in the years ahead: Clean Air Zones (CAZs).
Back in 2017, the Government’s Air Quality Plan identified almost 30 local authorities where urgent action was required to bring harmful air pollution – particularly nitrogen dioxide (NO2) – back within legal limits. Many more local authorities were subsequently added to the list. They were all ordered to devise their own clean air plans, of which CAZs could be a part.
So, what is a CAZ? In short, it’s a designated area where special measures are put in place to reduce air pollution. There are two main types of CAZ for local authorities to choose from. The first is a charging CAZ, which imposes fees on dirtier vehicles that travel through it; much like London’s new Ultra-Low Emission Zone (ULEZ).
The second is a non-charging CAZ, where there are no fees for motorists but, instead, a range of other green schemes, such as improved road layouts, public transport, cycling routes, reduced speed limits or extra charging points.
For the past couple of years, local authorities have been drawing up their clean air plans – and deciding whether they will include CAZs, and if so, what type. In 2020, we will start to see some of those decisions being implemented. There are considerable and potentially confusing variations in their charges including which classes of vehicles they apply to.
For example, in mid-2020 Leeds is set to introduce a CAZ that imposes charges on all non-compliant heavy goods vehicles (HGVs), buses, coaches of £50/day – taxis and private hire vehicles that do not meet minimum emission standards will pay £12.50/day. Cars and light commercial vehicles (LCVs) will be exempt.
Around the same time, Birmingham will introduce a charging CAZ, that like Leeds will also charge £50/day for non-compliant HGVs, coaches and buses, but £8/day for taxis and private hire vehicles that do not meet minimum emission standards – and cars and vans will be included.
Meanwhile, Bath is planning to introduce a charging CAZ on 4 November 2020 in which cars will be exempt, but LCVs will not.
For its part, Manchester plans to introduce a charging CAZ in 2021 that exempts cars but will charge non-compliant HGVs and coaches £100/day (twice as much as Leeds and Birmingham). This is to be expanded in 2023 to include non-compliant vans, minibuses, and motorhomes at £7.50/day.
And Bristol, which has some of the highest levels of NO2 in the country, has recently approved plans for a ‘hybrid’ CAZ for March 2021. This includes a charging CAZ for non-compliant commercial vehicles with buses, coaches and HGVs paying £100/day, and LCVs levied £9/day. But – in a first of its kind in the UK – Bristol’s plans will see all diesel cars banned from entering parts of the city centre between 7am and 3pm.
These proposals have been criticised by some for ignoring government guidelines and failing to distinguish between older, dirtier diesels and much cleaner Euro 6 diesels – which are potentially cleaner than older petrol cars, which are permitted in the zone.
Other cities also currently planning or considering charging CAZs include Coventry, Leicester, Newcastle, Portsmouth and Sheffield. Several others, including Basildon, Canterbury, Cardiff, Derby, Exeter, Nottingham and Southampton, have ruled them out.
So, we can see then that the UK CAZ map is rather more complicated than one might wish and is still in the process of taking shape. This shouldn’t, however, be cause for panic on the part of companies, fleets and motorists.
Where charging CAZs are introduced, the emission standards are likely to be the same as in London’s ULEZ – which means that HGVs will avoid fees if they meet Euro VI, petrol cars and LCVs if they meet Euro 4 standards; and diesel cars and vans if they meet Euro 6 (with the notable exception of the blanket ban on diesel cars in the planned Bristol ‘inner’ CAZ). Many vehicles in many fleets will satisfy these standards already, so won’t face any charges.
However, there is good and sensible cause to be prepared. This starts with knowledge. What CAZs are planned for the areas in which you operate? Are they charging or non-charging CAZs? If they are charging CAZs, will your vehicles or employees be affected? What do your telematics tell you about the routes your fleet and employees take?
With these basic questions and others answered, you can then proceed to make decisions that match your situation. Whether these involve planning alternative routes, moving non-compliant vehicles to different parts of your fleet – and/or bringing forwards vehicle renewals so that your fleet is Euro 6 compliant in time.
Given the changes the introduction of CAZs are ushering in, as well as other policies such as 0% Company Car Tax for zero-emission vehicles, it may be time to consider going for a full or partial electric vehicle. Given the government’s stated objective of ultimately eliminating new diesel and petrol vehicles by 2035, this is the surest way to future-proof your fleet. Though, of course, that decision must consider many variables itself, to do with your needs and requirements – and be economically justified.
As the landscape changes, previously ‘left-of-field’ alternative ideas such as bike schemes for employees might become more attractive. Nothing should be ruled out. Flexibility is, as ever, the key to successfully adapting to change.
ALD Automotive is here to lend a reassuring hand with this process. A leader in helping businesses prepare for CAZs, including by introducing alternatively fuelled vehicles into fleets, ALD can help you develop a robust plan and deliver solutions to keep you moving.
We have also helped map out the uncertain CAZ future. In conjunction with the University of the West of England (UWE), we have already produced a pioneering research report on Bristol’s proposed CAZs – and the effect they would have on fleets. Amongst other findings, we discovered, by analysing nearly a year’s telematics data, that if it were in operation today, 49% of vehicles entering the zone would be non-compliant and charged. For vans the figure was over 80%.
Working with UWE, we have been conducting research in other UK cities where charging CAZs are planned, including Manchester, and these reports will be published in the coming weeks.
What’s more, our award-winning interactive Mobility Experience has prepared numerous fleets for the automotive challenges of the future, as has our team of expert consultants.
Want to discover how ALD’s Consultancy Team can help you plan your route through the imminent Clean Air Zones? Get in touch!
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The ALD Automotive Consultancy Team
We specialise in designing efficient and cost effective responses to the changing fleet environment. We empower you to understand and optimise the transition of your fleet to a mobility based model. Using our collective insight and expertise, we can support you with the integration of Alternatively Fuelled Vehicles and other smart mobility solutions.
About the contributor
Matt Dale, Head of Business Intelligence and Consultancy
Matt has over 30 years of experience in the motor industry. Crowned 'Unsung Fleet Hero' by the Energy Saving Trust in 2017, Matt uses his extensive knowledge of alternative fuels and financial analysis to support businesses to develop sustainable and cost-effective mobility policies.
Tel: 0772 0342544
Email: matt.dale@aldautomotive.com
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Email: roadtozero@aldautomotive.com
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