Small business grant for LEZ cleaner vehicle technology

Small businesses in Scotland can take advantage of a grant to help meet the cost of complying with the new Low Emission Zones being introduced in Scotland.

The grant is available through the Energy Saving Trust with support from Transport for Scotland.

The Low Emission Zones (LEZs) are being introduced to Glasgow, Edinburgh, Aberdeen and Dundee. Non-compliant vehicles will face a fixed Penalty Charge Notice (PCN) of £60.

Glasgow’s LEZ is already in operation for buses and will start operating fully from June 2023. The remaining LEZs will commence charging a year later.

Why are there LEZs?

The LEZs are in place to help clean the air in Scotland’s most polluted cities. According to the NHS, air pollution is the biggest environmental threat to health with dirty air causing between 28,000-36,000 deaths a year. An LEZ provides polluting restrictions to a specific area.

What cars qualify for the LEZ?

• Petrol cars and vans with Euro 4 emissions (usually vehicles registered from 2006)
• Diesel cars and vans with Euro 6 emissions (usually vehicles registered from September 2015)
• You can check if your vehicle qualifies here on the LEZ Scotland checker.

What grant is available?

The Low Emission Zone Support Fund, funded by Transport Scotland, is offering grants of £2000 to scrap non-compliant vehicles. It is being administered by the Energy Saving Trust.

Following scrappage, a further £1000 is on offer to purchase a cargo bike or an electric cargo bike.

Which businesses qualify?

The grant is available to micro-businesses or sole traders with fewer than nine employees operating within 12.5 miles (20km) of an LEZ. The grant is to be put towards the acquisition of a business vehicle that meets LEZ standards. The grant is available for up to three vehicles.

Fleet Alliance comment

While Fleet Alliance is a national business offering fleet management and leasing services nationwide, we are based in Glasgow and fully support the move to better air quality in our locality – and in any urban area for that matter.

For a small business considering a new business vehicle, then this is a marvellous opportunity to make that step to a zero-emission car or van.

While the cost of buying may seem significant, leasing allows you to access vehicles on a lower monthly cost base without having to invest significant sums of capital – finance that could be working to develop the business.

Accessing the £2000 grant in addition to the Plug-in Car and Van Grant, the monthly lease rental cost can be significantly reduced, while the overall running costs of an electric vehicle are much lower than a traditional car or van.

As a business, we are committed to zero-emission motoring. Our own Fleet Alliance vehicle fleet is now fully electric and as a member of EV100, we plan to electrify our managed fleet of more than 30,000 vehicles by 2030.

We can help advise on your next steps to cleaner air motoring – contact us on 0345 601 8407 to speak with one of our leasing consultants.

Andy Bruce, CEO, Fleet Alliance

Where can I find out more about the LEZ grant?

Click here to find out further details on the grant available: Low Emission Zone Support Fund for businesses.