“The Age of Austerity has been the catchphrase of recent months, but after the long-awaited Spending Review announcement, talk of budget constraints must now be turned into tangible reductions. Cutting costs need not equate to cutting services.
“If necessity is the mother of invention, the Spending Review should act as the catalyst for a new strategic approach to fleet management in the public sector. With a long-term vision and openness to change, the public sector has an opportunity to reform its fleet operations and increase efficiency, whilst cutting costs.
“As the fifth highest indirect government expense, fleet may be a tempting target for quick savings. But ill-considered cuts will not lead to long term savings and may indeed cause higher costs in the long run. There is a risk that leasing savings could be cancelled out as employees file expense claims for increasing mileage or more frequent vehicle rental. Equally, with rail fares set to rise at three per cent above inflation, public transport may not offer a cheaper or practical option.
“By outsourcing fleets, the public sector can make the most of its vast buying power, save administrative time, gain external industry expertise and access newer vehicles, meaning lower carbon emissions and improved employee health & safety.
“The private sector is already leading the way and offers a blueprint for the public sector. An estimated 60 per cent of private sector fleets with over 250 vehicles are outsourced, yet for similar sized public sector organisations, the figure is closer to 25%.
“Outsourcing will not be the perfect solution for every fleet, but it is definitely something the public sector should be considering.”
Stuart Walker, brand director of Automotive Leasing
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