Firms wasting £1 billion on inefficient company vehicles | RBS Invoice Finance

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The Energy Savings Trust (EST) has warned that English businesses are wasting up to £1 billion a year on inefficient company vehicles.

What’s more, most of the money is being wasted due to 'widespread misunderstanding of how to reduce costs and cut emissions', according to the trust. In fact, the EST says that fairly simple changes to the way in which companies manage their fleet vehicles could result in significant savings.

One of the key 'misconceptions' revolves around the effectiveness of fuel efficiency measures, as well as the savings offered by switching to electric vehicles (EVs) and some hybrid models. The other advantage that businesses are losing out on is the chance to cut their carbon emissions.

Andrew Benfield, the director of transport at the EST, said:

'Nearly half a million English companies manage their own fleets – but there is a widespread misunderstanding of how much costs can be reduced just by making a few small changes.

These changes include changing driver behaviour to avoid idling, braking suddenly and changing gear unnecessarily, measures which alone would cut fuel usage by around 15%. Furthermore, a complete switch to EVs or hybrid vehicles would save on both fuel costs and National Insurance Contributions (NICs). In this way, the EST estimates that English businesses could save around £35 per car per month – equating to £1 billion in savings across the country.'

The recent report follows another EST study, which showed that the so-called grey fleet (where employees use their own vehicles for work purposes) is costing businesses in terms of carbon emissions, operating costs and increased air pollution, all of which has a cumulative effect.

For more news, views and reviews on funding and support for the UK sustainable energy and transport sectors follow us on Twitter @RBSIF.

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