Scottish Government Vehicle Replacement Support for Businesses Operating in LEZs

Grants are available to micro businesses and sole traders in Scotland’s four largest cities to support them in taking older, more polluting vehicles off the road and move towards cleaner transport options.

The Low Emission Zone Support Fund for Businesses is administered by the Energy Saving Trust on behalf of the Scottish Government. The fund is designed to offer an incentive for eligible businesses to take their older, more polluting vehicles off the road following the implementation of low emission zones across Glasgow, Edinburgh, Aberdeen and Dundee.

The Scottish Government is providing a total of £5 million to deliver the Low Emission Zone Support Fund for 2024/25. Grants of £2,000 are available to micro businesses and sole traders with an operating site within 20km of Scotland’s low emission zones. If the applicant has applied for the Low Emission Zone Support Fund for the disposal of an older vehicle, Energy Saving Trust can only provide funding for a maximum of three vehicles across both Low Emission Zone Support Fund and Low Emission Zone Retrofit Fund.

Additionally, to be eligible the applicant must:

• Employ nine or fewer full-time employees.
• Have a turnover of £632,000 or less, or a balance sheet of up to £316,000 in the preceding and current financial year.
• Take their non-compliant vehicle to be scrapped at a Scottish authorised treatment facility.

Following vehicle disposal and successful receipt of the fund, eligible businesses may be offered an additional £1,000 towards the purchase of a purpose built cargo or electric cargo bike only, to support their specific business needs.

Support may be accessed at any time while funding remains available.