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Decision details

Car Lease Salary Sacrifice Scheme

Decision Maker: Co-operative Executive

Decision status: Recommendations Approved

Is Key decision?: Yes


A Salary Sacrifice Car Lease Scheme allows the Council to provide employees with a brand new fully maintained and insured electric car through flexible benefits, at a lower cost than they could normally achieve in the retail market. We seek to introduce a scheme to encourage the purchase of electric vehicles to contribute towards the aim of the city achieving Net Zero by 2030.




The purpose of this report is to outline the proposal to introduce a car lease salary sacrifice scheme (electric vehicles) for Council Employees and to seek approval to enter into a contract with the supplier.




RESOLVED: That Co-operative Executive:-


1.    Approves the implementation of a Car Lease Salary Sacrifice Scheme (electric vehicles) to be made available to Sheffield City Council employees.


2.    Approves the Council entering a Contract with a Supplier for the provision of the Scheme as outlined in this report.


3.    Delegates authority to the Executive Director of Resources, in consultation with the Director of Finance and Commercial Services and the Director of Legal and Governance to:


a.    agree the terms of the Scheme Policy.


b.    take all other decisions necessary to meet the aims, objectives and outcomes of this report which are not already covered by existing delegations in the Leaders Scheme of Delegation. 





Reasons for Decision




It is recommended that the Council approves the implementation of a Car Lease Salary Sacrifice Scheme (electric vehicles) to be made available to Sheffield City Council employees.  This will help to meet the target of Net Zero by 2030.



Alternatives Considered and Rejected




Alternative options that were considered as part of this scheme are detailed below.


Alternative Option 1 – ULEV Scheme – Vehicles under 75 g/km


Advice from the Sustainability and Climate Change Service suggests that supporting the purchase of ULEV to include hybrid vehicles may help to achieve a reduction in specific vehicle emissions if this is replacing a diesel vehicle or one with higher emissions. However, it could increase the amount of carbon dioxide emissions and continues to produce higher carbon emissions if the new vehicle is not a replacement for an existing vehicle.


Alternative Option 2 - Green Scheme – Vehicles under 120 g/km


Manufacturers are continually improving the efficiency of engines and reducing CO2 emissions. There are several hundred vehicles that will fall into this category offering a wide selection of vehicles. As a result, employees who are considering a new vehicle purchase could purchase a vehicle with lower emissions than their current vehicle. Employees who have purchased a car more recently e.g. in the last 3 or 4 years, may already have a vehicle with emissions lower than 120 g/km. Therefore, it is possible that offering vehicles within this category may not result in lower emissions. In any event, the scheme should exclude diesel vehicles to support a reduction in carbon emissions. 


Alternative Option 3 - Do Nothing


The scheme will support the Council’s clean air agenda and should result in a positive impact resulting in a reduction in vehicle emissions in Sheffield.




Any Interest Declared or Dispensation Granted








Reason for Exemption if Public/Press Excluded During Consideration








Respective Director Responsible for Implementation




Executive Director, Resources




Relevant Scrutiny and Policy Development Committee If Decision Called In




Overview and Scrutiny Management Committee



Report author: Shaun Lee

Publication date: 22/10/2021

Date of decision: 20/10/2021

Decided at meeting: 20/10/2021 - Co-operative Executive

Effective from: 29/10/2021

Accompanying Documents: