Alliance Asset Management advice local authorities on fleet cost savings
Alliance Asset Management is advising local and central government organisations to look to sale and leaseback on their fleet vehicles to collectively save millions of pounds, with further savings to be made from adopting best practice as the private sector. This advice comes in the wake of the Government’s announcement of cuts in central funding for councils that could total up to 28% over the next four years. The cuts, which are the worst to be faced by councils since the end of the Second World War, will come into effect from April 6, 2011.
Vincent St Claire, Managing Director of Alliance Asset Management said: “The rule book by which the public sector has run its fleet and transport operations in the past must be ripped up.
“With some government organisations and councils owning hundreds of vehicles the quickest and simplest way to replenish financial coffers is to dispose of assets. The sale and leaseback of vehicles has been popular in the private sector for many years and there is no reason why the cash-raising solution should not take-off across the public sector.
“Not only will these organisations receive a much-needed injection of funds, but they will benefit from being able to exactly budget for their vehicle leasing costs on a monthly basis which will help cash flow.”
In the wake of the autumn Government Spending Review, Alliance Asset Management offered to undertake a level of free consultancy on behalf of individual public sector organisations to assist them in identifying ways in which they can develop cost-effective, value for money policies and procedures.
See also:
No comments yet
