UK councils are operating fewer than 50,000 cars and light commercial vehicles between them, with more than two-thirds (70%) based in England.

Local authorities in Scotland are responsible for 20% (9,901 units), while Welsh councils are running 3,990 units, equivalent to 8% of the fleet.

Northern Ireland has the smallest share, with local authorities collectively operating 904 units – just 2% of the UK total.

The figures have been revealed as part of a Fleet News investigation which provides a unique insight into council fleet operations in the UK.

Information was sourced through freedom of information requests sent to 434 UK councils, not including parish and town councils, between July and December last year, with a 92% response rate.

The council operating the most vehicles – cars, vans and trucks – is Southwark Borough Council in London (1,290), closely followed by Cornwall Council (1,239, spread over a vast area) and Glasgow City Council (1,208).

Just two other councils operate more than 1,000 vehicles: Fife Council and Hertfordshire County Council.

Despite not having any historical figures to compare the data against (although Fleet News Fleet200 data shows largest council fleets are shrinking), it is believed that council-run fleets have reduced by thousands of vehicles over the past five years.

Faced with swingeing budgets cuts, local authorities have cut their costs accordingly, partly by outsourcing services such as property maintenance, street cleaning and refuse collection to private sector companies.

The trend in outsourcing has benefited the likes of Mitie Group, Enterprise, Kier Group, Amey and Mears Group – some of the biggest fleets in the country according to the Fleet200. These five companies alone collectively operate more than 24,000 cars and vans.

Councils have also developed shared services and achieved better fleet utilisation through the use of technology, depleting vehicle numbers further.

Some have also sought to replace their company car fleets with grey fleet by encouraging staff to use their own cars for business purposes, eliminating lease costs and reimbursing staff via the AMAP rate.

However, critics question whether this approach saves money when it comes to higher mileage drivers.

In terms of cars, UK councils operate 13,266 units, with English councils accounting for three-quarters, equating to 10,126 units. Scottish councils are the second biggest car fleet operator, responsible for 19% or 2,561 units. Wales operates 4%, 507 cars, and Northern Ireland 2% – just 72 units.

Councils have increasingly focused on utilisation when it comes to commercial vehicles, both van and truck. Many have downsized from large panel vans to medium (or medium to small) while others have reduced their fleet sizes.

English councils are responsible for the lion’s share of light commercial vehicles with 68% of the fleet. Scotland operates one-fifth of council-run LCVs; 10% are run by Welsh councils; Northern Irish councils are responsible for just 2%.

In terms of vehicles weighing more than 3.5 tonnes, England councils run 66% of the UK's 23,080 vehicles. Scottish councils account for 19%, Wales 11% and Northern Ireland 4%.

When the heavy vehicle data is added to the car and LCV figures, the UK-wide fleet comes to 73,324, excluding plant.

English councils control 69% – 50,602 vehicles. Welsh councils collectively operate 6,628 units (9%), Scotland runs 14,313 vehicles (20%) and Northern Ireland 1,781 units (2%).

With councils facing more cuts in the coming years due to ongoing austerity measures from central government, the national public sector fleet is expected to further shrink.

Tim Meadows, brand director of LeasePlan’s public sector arm, Automotive Leasing, said: “The National Audit Office has said that by 2016 local authority funding will have been cut in real terms by 37% since 2010.”

It has put fleet operations in the firing line and resulted in councils leaving no stone unturned in their quest to cut costs.

“Councils are refocusing their fleet strategy,” said Dean Hedger, head of public sector at Alphabet. “Many organisations are investigating the most appropriate business mobility  solution to keep their employees moving from A to B in the most efficient and cost effective way.”

Meadows added: “We are seeing increasingly close monitoring of the number of vehicles being used and the specific use of each one. Telematics is becoming an attractive part of vehicle funding packages to address inefficiencies in this area.”

South Tyneside Council is typical of many, with budgets squeezed and staff numbers cut, while the demands of providing vehicles to its front-facing services have remained.

However, thanks to a range of measures, including the use of technology, it is delivering an effective fleet. Its 370 vehicles are used across a range of departments and telematics has played its part.

“It has helped us achieve savings across a range of areas and improved productivity,” explained interim fleet manager Alan Wilson.

“In fuel alone, it has enabled us to cut costs by 8-10% and it has also enabled us to counter any claims against our drivers or our vehicles. It’s saved our council thousands of pounds.” 

Councils prefer to buy rather than lease vehicles

Nine out of 10 council fleets in the UK purchase some or all of their vehicles outright, Fleet News can reveal.

The fleet funding method is particularly popular with vans and heavier vehicles, rather than car fleets.

However, UK-wide analysis shows more than a quarter (26%) of councils purchase all of their vehicles outright, while 66% of local authority fleets use outright purchase in combination with leasing as their preferred funding method. Just 8% of UK council fleets lease all of their vehicles.

Examining the breakdown of fleet funding methods according to each individual country reveals differences between England, Wales, Scotland and Northern Ireland.

In England, 23% of councils outright purchased all of their vehicles, while 68% used a combination of leasing and outright purchase. Just 9% of English councils lease all of their vehicles.

Four out of five (80%) councils in Wales use a combination of leasing and outright purchase to fund their vehicles, with one in five (20%) fleets purchasing all of their vehicles. None chose leasing as their sole funding method.

Meanwhile, more than a third (38%) of Scottish fleets buy all of their vehicles, with 10% using leasing as their only funding method and around half (52%) using a combination of the two.

Northern Ireland has the biggest number of councils using outright purchase as their sole funding method, at 64%, with 32% using it in combination with leasing and 4% leasing all of their vehicles.  

A number of councils across the UK also have short and long-term rental arrangements in place allowing them to flex their fleet as and when required for both cars and commercial vehicles.

Alphabet’s Dean Hedger said: “While purchasing a vehicle outright can have its advantages, councils should consider the risks including maintenance costs and the resale or disposal of the vehicle.

“At Alphabet, we have seen public sector organisations keen to minimise the risk of owning assets where cost effective. 

“Contract hire is coming to the forefront as the preferred option, with no risk, reduced administration and fixed budgeting.”