Soft Market Test - Loan Administration to support vehicle purchase

Sheffield City Council is planning to introduce a charging Clean Air Zone in Sheffield in response to a government directive to reduce NO2 emissions, and in accordance with Sheffield's own ambition to improve air quality across the city as quickly as possible. Based on the findings of a Sheffield/Rotherham feasibility study, our preferred option is for a 'Category C' Clean Air Zone (CAZ C) charging zone within (but including) the inner ring road of the city centre.

This means that all non-compliant buses, taxis, Heavy Goods Vehicles (HGVs) and Light Goods Vehicles (LGVs) will be charged a daily clean air zone fee for driving into the city centre. The intention of proposing a charging CAZ model in Sheffield is not to penalise companies or drivers; the intention is to encourage and support the removal of the most polluting vehicles from the city's roads in order to make our air cleaner and safer to breathe.

In light of this objective, the Council is currently developing options in relation to a range of support packages to enable certain drivers affected by the CAZ to upgrade and replace non-compliant vehicles. One option currently being developed relates to the provision of a loan fund, or portfolio of funds, to support owners of non-compliant hackney carriage taxis and private hire vehicles, LGVs and HGVs in the acquisition of new vehicles.

The intention is that the loan to individual drivers or organisations would be on a zero interest basis, with the Council seeking external grant funding to meet the cost of loan capital borne by the loan administrator. The Council is ideally looking for a provider to undertake all activities relating to the scheme, including the provision of working capital to finance the scheme, undertaking of credit and affordability checks, case management, account management and early enforcement.

To further understand options for delivery, we are keen to further understand the degree of market interest and viability of such a scheme. Please note that this is a market test exercise only and not a competitive exercise; the Council makes no guarantee that a procurement exercise will be undertaken as a result of the market test. More information relating to the Sheffield Clean Air Zone and Sheffield's Clean Air Strategy can be found at the links below: Sheffield CAZ: Clean Air for Sheffield Clean Air Strategy: Clean Air Strategy pdf