Power to the council people

Employees of North Lanarkshire Council will be given the opportunity to obtain electric vehicles at a cheaper cost via a salary sacrifice scheme.

Despite an overall decline in car sales in the last year, demand for electric and ultra low emissions vehicles has grown and other employers offering car schemes have found staff are attracted to these as they seek to make the most of their income and adapt their lifestyles in line with ongoing developments and the rapid growth of plug-in electric vehicles on our roads is expected as costscomedown,moremodels become available and consumer confidence grows.

The council will benefit from the scheme as part of its efforts to reduce carbon emissions, including from business mileage, and it will also have to pay less national insurance and pension contributions due to staff making the salary sacrifice.

Employees entering the scheme can expect savings on income tax, national insurance, and pension contribution. No deposit is required, and all cars are insured and maintained with fuel savings averaging £750 (over a year driving 10,000 miles) as it costs just £2-3 to drive 100 miles in an electric car, less than a quarter of the price of a petrol car.

A popular vehicle in schemes operated by other councils is the Peugeot e-2008 full electric SUV. For 41% rate income taxpayers this car starts from £241, representing savingsof£192whencomparedto open market commercial vehicle rates.The scheme would be open to staff earning over £23,000.

Theschemewasendorsedbythe council’s Finance and Resources Committee and the next steps are for the council to continue working with trade unions on its implementation, identify a provider and plan for launch.