The decision relates to the adoption of a net revenue share agreement between Oxfordshire County Council and Oxford City Council with regards to the ZEZ Pilot scheme.

Payments from the ZEZ Pilot to the City will comprise repayment of all City’s net eligible historic costs, and payment of 50% share of net income (once running costs are deducted) for every year that the scheme is in operation, up until the date by which the expanded ZEZ scheme is expected to launch.

This agreement contributes to the improvement of local air quality and responds to the City Council’s current Climate Change commitments, as introduces a new revenue stream that the City Council can use to invest in sustainable transport-related projects for the city and its residents.

Income from the Pilot ZEZ Scheme will only be used to pay for its development and operation and to fund schemes that support the transport objectives of both councils, as the Transport Act 2000 requires that net proceeds are only used for schemes that facilitate the achievement of local transport policies.

The Executive Director (Development) has exercised delegated authority to approve the legal agreement proposed by the County Council, after consultation with the Head of Financial Services, the head of Corporate Strategy, and the Head of Law and Governance, and after considering all the information available in the Cabinet report of 17^th April 2024 and its appendices:

According to the proposed agreement, payments from the ZEZ Pilot to the City will comprise repayment of all City’s net eligible historic costs, and payment of 50% share of net income (once running costs are deducted) for every year that the scheme is in operation, up until the date by which the expanded ZEZ scheme is expected to launch, whereby this proposed income share agreement automatically ceases.

Although the City Council’s liability for its share of net costs is unlimited under the agreement, it is concluded that the risk to the City Council of incurring in those liabilities is very reduced (practically residual) given:

The elements provided by County in its Shared Costs and Income Forecast Report (Appendix 3 -Confidential) and which clearly attest for the financial viability of the scheme.

The elements provided by City in its Risk Assessment Report (Appendix 2).

The fact that the proposed agreement currently includes a mutual indemnity against costs arising to either party, as a result of the other’s failure (lawfully or properly) to fulfil its functions.

The short-term duration of this agreement (anticipated to be in place only until the expected launch of the wider ZEZ scheme) and how this element impacts on current and future EV uptake rates (In the Pilot Zone, and Nationally), as highlighted in detail on the “Financial Implications” section of the cabinet report.

As soon as the City Council seals the ZEZ Income Partnership Agreement, the document will need to be submitted to Oxfordshire County Council for its final approval.

On 28 February 2022 Oxfordshire County Council and Oxford City Council have jointly introduced a Zero Emission Zone pilot scheme in Oxford to reduce air pollution levels, tackle the climate emergency, and improve the health of residents, workers, and visitors in Oxford and beyond.

In its decision of 10th March 2021, the Cabinet approved the introduction of the ZEZ Pilot scheme, including supporting Oxfordshire County Council in their legal implementation of the scheme and gave authority to the Executive Director for Development to enter into legal agreement with County in relation to the treatment of surplus funds raised from the scheme and related matters.