In a bid to reach Net-Zero by 2050, many city centres are introducing Clean Air Zones. Not only do Clean Air Zones help to reduce emissions that can affect the planet, but they help to reduce pollution that can cause major health issues.
What are Clean Air Zones and what is the impact on businesses?
City centres are introducing Clean Air Zones to improve air quality within large cities. This can have a knock-on effect on businesses who regularly drive in cities centres, such as taxi firms. One taxi firm recently came to us for help in financing a fleet of hybrid vehicles as the cost of driving in the city on a daily would cost the business too much in their old vehicles.
There are 4 types of Clean Air Zones, Class A to D:
Class Vehicle type
A - Buses, coaches, taxis, private hire vehicles
B - Buses, coaches, taxis, private hire vehicles, heavy goods vehicles
C - Buses, coaches, taxis, private hire vehicles, heavy goods vehicles, vans, minibuses
D - Buses, coaches, taxis, private hire vehicles, heavy goods vehicles, vans, minibuses, cars, the local authority has the option to include motorcycles.
Electric and hybrid vehicles will provide you with the ultra-low emissions needed to avoid being charged, and at ABL we can help you spread the cost.
More businesses are looking at moving to Electric Vehicles for company cars, directors cars, trucks and lorries not only because of the Clean Air Zones but because of the impact on the businesses ESG rating. You can find out more about what ESG is and ABL's journey here.
Where are the Clean Air Zones?
Bath- Class C, Birmingham – Class D and Portsmouth – Class B are the cities that currently have Clean Air Zones, with Bradford and Greater Manchester set to implement the changes this year (2022).
If you have a vehicle that is ultra-low on emissions the Clean Air Zones will not affect you and you won’t be charged for driving in the city. You can find the full list of exemptions here on the government website.
https://www.gov.uk/guidance/driving-in-a-clean-air-zone
What are the costs associated?
The cost for driving in a Clean Air Zone in a vehicle that is not exempted will depend on a few things, the age of the vehicle and where the Clean Air Zone is.
Each of the different zones has a slightly different pricing structure but ranges from £7 for a smaller vehicle and £100 for a large vehicle. Failing to pay the fee could result in a £120 fine, which is halved if paid in 14 days and raised to £180 if not paid within 28 days.
What can businesses do?
If you’ve been thinking of upgrading your fleet of taxis, lorries, trucks, or vehicles now is the time to be looking at electric vehicles.
Not only will these help with your ESG score but will allow you to drive through any Clean Air Zone and not have to pay a fee.
There are government grants in place to ease the transition of going electric, such as installing charging points at your place of work.
You don't want to be left behind. Whether a Clean Air Zone is coming to a city near you or not, they one day will be. It's best to get ahead of the game with anything like this rather than leaving it till the last minute. That way you've got the time to consider what all the options are and make a decision which best suits your business.
ABL has experience in helping businesses get access to commercial finance to help purchase vehicles of all types. If you want to find out more get in touch with us on 01274 965356 or send us an email.
If you want to find out further information about this topic you can get in touch with Luke via email or call him on 07415 864 567 to talk through your options.