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Response by Head of Service: Thank you for your questions. The responses are as follows: 1. Based on current fleet composition and assuming no changes to vehicle types or quantities between the 2024/25 and 2025/26 financial years, Powys Council is projected to incur an overall increase of approximately £6,450 in Vehicle Excise Duty across its fleet. This figure reflects the cumulative impact of revised VED rates applied to electric, petrol, diesel, and heavy vehicles. Notably, electric vehicles—previously exempt from annual VED—will now attract a standard rate of £345 per vehicle, aligning them with the cost of internal combustion engine (ICE) vans. This change significantly reduces the financial advantage previously associated with operating electric vehicles within the fleet. 2. The introduction of VED charges for electric vehicles will have a direct impact on budget forecasting and cost-efficiency planning. Electric vans, which previously incurred £0 in annual tax, will now cost £345 per unit, matching the rate applied to comparable ICE vans. This shift diminishes the anticipated savings from transitioning to electric options and may influence future procurement decisions. Additionally, there is uncertainty surrounding the VED classification of the electric Romaquip vehicle. Preliminary guidance suggests it may also be subject to the £345 rate, but this has not yet been confirmed. The lack of clarity on this point introduces a variable that could further affect budget allocations and planning accuracy. 3. A fleet audit has been conducted to evaluate the applicability of the revised VED rates. The Council has confirmed that none of its current vehicles fall within the scope of the £425 Expensive Car Supplement, which applies exclusively to cars with a list price exceeding £40,000. Furthermore, there are no plans to acquire vehicles that would trigger this supplement. Please note, this only applies to Council Fleet vehicles and not those obtained via the Lease Car Scheme.
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