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Government bids to cut £39m from fleet costs
Date: 14 December 2010 | Author:
The push to cut 15% from the Government's central car fleet is taking shape, with a wide range of measures being considered, including better vehicle management, changes to ordering and specification and a review of grey fleet expense.
Following a comprehensive review by the Efficiency and Reform Group, plans are being constructed to wipe out £39m of the current £260m annual central Government spend on vehicles over the next two years.
Although final decisions haven't yet been taken, early indications are that the Government will look to flex its muscles in terms of buying power to cut prices across the fleet of 41,000 vehicles.
Procurement experts within Government are looking at how to standardise specifications across cars and commercial vehicles in an attempt to improve economies of scale. There have also been reports of changing the procurement method to deal directly with manufacturers in order to cut costs. At present, more than 70% of central Government vehicles are leased, with the rest purchased outright.
The Government is also looking at system changes to improve vehicle utilisation, with the aim of avoiding one department storing a vehicle or terminating a contract early while another is ordering a new one.
The travel review is also said to incorporate grey fleet vehicles, where employees use their own private cars for work business. That assertion comes despite a BusinessCar investigation led by a Freedom of Information request that found almost all Government departments aren't even recording their grey fleet mileage, let alone monitoring or controlling it. Of the 14 Government departments contacted by BusinessCar, only two recorded accurate grey fleet figures.
