SME Fleet Analysis Support Guidance

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Overview

Scotland continues to face the urgent challenge of reducing transport emissions as part of our wider response to the global climate emergency. Heavy goods vehicles remain essential to the functioning of our economy, keeping supply chains moving and enabling businesses of all sizes to operate efficiently. Yet this sector also accounts for a significant share of road transport emissions, meaning its transition to cleaner alternatives is pivotal to meeting Scotland’s climate ambitions.

Across the country, many small and medium‑sized operators recognise the importance of decarbonising but face complex decisions on technology, infrastructure and investment. As the Scottish Government develops the next Climate Change Plan, it is critical that SMEs are equipped with the evidence, partnerships and confidence needed to make this transition. Learning from successful approaches in other sectors, particularly the collaborative model that helped unlock progress in zero‑emission buses, remains central to this.

In 2025/26, Transport Scotland launched Phase 1 of the HGV Market Readiness Fund, comprising two funded schemes. The Consortium Builder strand fully funded eight consortia bringing together SMEs, vehicle manufacturers, technology providers, infrastructure partners and financiers to develop credible HGV decarbonisation proposals. The funding enabled market engagement, matchmaking and early‑stage project development, helping participants to identify shared challenges, align around common solutions and create collective propositions that would not have emerged through individual action alone. This work promoted collaboration, strengthened supply‑chain relationships and helped build a pipeline of investment‑ready concepts to inform Transport Scotland’s future policy development.

The Phase 1 HGV Market readiness Fund: SME Fleet Analysis Support Scheme demonstrated the value of targeted assistance, supporting the analysis of more than 750 vehicles and thousands of routes. It also highlighted the appetite among SMEs to engage in larger decarbonisation consortium activity and help shape the future of the HGV sector. By helping fleets better understand their options to decarbonise, the scheme provided Transport Scotland with valuable intelligence on the real‑world challenges businesses face in transitioning to zero‑emission HGVs.

Building on this momentum, Phase 2 of this fund will enable a new cohort of operators to access funding through the 2026/27 SME Fleet Analysis Support Scheme. Open for applications until 15 January 2027, the scheme will enable SME HGV Fleet operators to undertake detailed fleet and infrastructure assessments and explore emerging commercial and financing models. The insights generated will support businesses in developing robust decarbonisation plans and provide Transport Scotland with the real world evidence needed to inform future policy and funding programmes. Through this next phase, we aim to strengthen market readiness, deepen collaboration and help position Scotland’s haulage sector for a successful transition to zero emission transport.

The Funding

The funding is designed to support Scotland’s HGV SME and micro-business fleets to better understand their pathways to decarbonisation. Financial support is being offered to help hauliers assess their current and future fleet plans, what viable technologies, grid-connections, routes, infrastructure and vehicles best suit their operational needs.

It is expected that the funding will produce a report which is shared with the haulier and with Transport Scotland.

The report should provide both the fleet operator and Transport Scotland with an understanding of what the short, medium and long-term solutions for decarbonising the HGVs in the fleet are. This should include commentary on technology shift, energy requirements, use of shared infrastructure, timelines by which each vehicle/route type would be zero-emission, new viable financing options such as truck-as-a-service or energy-as-a-service which may enable adoption earlier.

There is an upper limit of £15,000 offered for the report. Any additional costs will need to be met by the haulier or consultancy involved in the project. The funding will be open for applications until 15 January 2027. Applicants can apply for funding at any point up to this date, and Transport Scotland will endeavour to respond within 10 working days. From the point of a Grant Offer Letter being issued, the Grantee will have approximately 12 weeks to complete the report. All funding must be claimed before 12 March 2027.

This document provides guidance to applicants wishing to apply for this funding.

Eligibility

You are eligible to apply for this fund if you:

1. are a transport data consultant supporting a HGV fleet operator with 100 or fewer HGVs with the main registered office or headquarters based in Scotland.

Operators/subsidiaries under the same ownership/parent group will be considered as one company for the purposes of this funding. 

Only one application per group (parent company and subsidiaries within this) will be eligible. The group are eligible if:

1. The total number of HGVs held within the group is 100 or less and;
2. The total group headcount is less than 250
3. Annual turnover is less than or equal to £44m or a balance sheet total of less than or equal to £38m.

In accepting the funding the fleet operator agrees to;

1. being open to collaboration with other key stakeholders in the HGV sector, including other fleets (HGV, bus, coach, etc.), chargepoint operators, financiers and manufacturers;
2. being put in contact with financiers, manufacturers and other operators who are seeking to develop business cases for transitioning Scotland’s HGV fleets;
3. consider the findings of the report produced and take steps where possible to implement zero-emission technology into the business.

On completion of the report and evidence provided to Transport Scotland, successful applicants can claim their grant funding. Claims can only be submitted by the data consultant on receipt of completed work e.g. a copy of completed report provided to Transport Scotland. 

The eligible costs that an applicant can claim are:

1. Resource or staffing costs directly related to the production of the Fleet Analysis report.

The ineligible costs include:

1. Value added tax (VAT) reclaimable by the grantee.
2. Cost associated with events, promotion, branding or other marketing-type activity
3. Costs not directly supporting the grant purpose.

Report Expectations and Process

It is expected that the SME haulier will work with a consultancy, university, or analytical partner to develop the report.

The report should provide the SME fleet operator with a clear, understandable evidence based assessment of zero-emission HGV technologies and identify an appropriate pathway for fleet decarbonisation aligned to their specific business operations in line with the below sections.

• Executive summary of analysis and findings
• Current assessment of operational activities 
• Existing fleet requirements
• Vehicle requirements and availability
• Charging infrastructure requirements and local grid availability
• Analysis of fleet transition and Total Cost of Ownership (TCO)
• Assessment of how decarbonisation could be financed by the fleet
• Opportunities for collaboration to support fleet transition
• Next Steps and Implementation

Data consultants should consult Annex A for full report requirements.

Collaborative working is encouraged, so applications which have sought the input or collaboration with neighbouring businesses, chargepoint operators or financiers would be received favourably.

The supplier should be aware of, and make relevant reference to wider work that will support the evidence base for this activity. This includes:

1. Zero Emission Truck Taskforce
2. Bus Market Transition Scheme
3. Bus Decarbonisation Taskforce
4. Towards Zero Emission HGV Infrastructure in Scotland

Fair Work First Requirements

The application form (‘Fair Work First Pro-Forma’) will ask you to complete a pro-forma on the Fair Work First requirements. If you are unclear on what information you need to provide, Transport Scotland will support you with completion of the Fair Work First evidence.

Fair Work First is the Scottish Government's flagship policy for driving high quality and fair work across the labour market in Scotland by applying fair work criteria to grants, other funding and contracts being awarded by and across the public sector, where it is relevant to do so. The Fair Work First guidance outlines our Fair Work First approach and exemplifies the seven Fair Work First criteria in practice.

The default position is that all grant recipients awarded a public sector grant on or after 1 July 2023 will be required to pay at least the Real Living Wage and provide appropriate channels for effective workers' voice as a minimum standard while the other five criteria are encouraged.

Prior to a grant offer letter being signed, grant recipients need to demonstrate that the Real Living Wage is paid and provide evidence of appropriate channels for effective workers’ voice. There is a pro-forma for Fair Work First attached below and with the application form which must be completed in order to submit a grant funding request and to satisfy the funder of compliance.

The grant recipient is to produce the appropriate factual evidence that it is meeting the Real Living Wage and effective voice conditions and confirmation of its commitment to working towards the remaining five desirable Fair Work First criteria, in order to satisfy the funder of compliance.

It is the responsibility of the grant recipient who is managing the grant funding to ensure that any other partners who are involved in grant delivery are compliant with the Real Living Wage condition (applies to workers directly engaged in the delivery of the funded activity who are aged 16 and over, including apprentices and based anywhere in the UK).

Examples of evidence suitable for individual and collective worker’s voice is provided below. 

1. Examples of evidence suitable for individual and collective worker’s voice by channel

Line Management Relationship (i.e. effective 2-way dialogue through 1:1 relationship)

Written confirmation from trade union/worker representative(s) that there is opportunity for regular 1:1 open and two-way dialogue between line managers and their direct reports; that this dialogue exists separately to standard performance review processes; and that worker-manager working relationships are effective. This could also be supported by evidence of regular engagement survey that supports this; and/or in Organisation’s KPIs.

Staff /Engagement Surveys

Written confirmation from both management and trade union/worker representative(s) that an appropriate survey is regularly undertaken and can demonstrate that feedback is provided to workforce and actions created and implemented to address this.

Suggestions Schemes

Written confirmation from both management and trade union/worker representatives that a scheme exists and examples provided of improvements made as a result. 

Intranet/Online Platforms

Written confirmation from both management and trade union/worker representatives that an internal platform exists that allows worker contribution to strategic discussion and examples provided where input is acknowledged and acted upon.

Staff Forums / Networks  

Written confirmation from both management and trade union/worker representatives that network(s) and/or a forum exists, meets regularly, supports open dialogue and is action focussed. Examples of actions progressed should be provided

Trade Union Recognition/ Collective Bargaining

Copy of Recognition Agreement is provided.

Access is provided to trade unions / Pro union Membership attitude is demonstrated

1) Trade union(s) confirm that access is granted to recruit and organise members.

And/or:

2) Workers are aware that the employer is happy for them to join a union of their choice (e.g through induction materials, clause in contract).

Joint Consultative Committee/s (JCC)

Written confirmation from both management and trade union/worker representative(s) that JCC/s exist and examples of issues covered.

European Works Councils (EWCs)

Papers from EWC demonstrating membership and active participation.