Issue - meetings

That the Cabinet Member for Finance and Corporate Services:

That the Cabinet Member for Finance and Corporate Services approved a direct call off contract from CCS Framework RM 6268 to NHS Fleet Solutions Ltd for an employee car leasing scheme via a salary sacrifice for the value of £2,188,800. This spend does not impact the Council’s budget as all costs are paid for by employees via salary deduction. This amount is based on an estimated 2% workforce participation, which is equivalent to 73 vehicles over the contract term.

The contract term would be three years plus the option to extend for a further year under Crown Commercial Service (CCS) Framework, RM6268, lot 4 - Salary Sacrifice Cars.

Reasons for decision

To expand the Council’s current employee benefits portfolio and help employees with the continued increase in cost of living at no cost to the Council.

Provide a cost effective way for employees to lease a new car via monthly deductions from their salary.

The introduction of this salary sacrifice scheme will result in employer savings from reduced national insurance and pensions contributions, the Council would not incur any additional expenditure costs. The fixed employer surplus savings are projected at circa £640 per car per year, which includes any savings from reduced employer national insurance and employer pension contributions where applicable.

The car leasing scheme will help support employee retention and recruitment as follows:

· An additional benefit that will differentiate the Council from other organisations, especially other Councils where salary ranges are similar.

· Provides an affordable way for employees to access a car without upfront costs.

· Offers monthly fixed payments covering insurance and maintenance, which will help ease the financial burden of car ownership.

· Enables employees to benefit from tax and national insurance savings.

· Providing lifestyle benefits like car leasing shows the organisation values employee well-being, which can increase loyalty and engagement.

Alternative options considered

Not to introduce this benefit. This was rejected as it is an additional benefit for employees at no cost of the Council.