Transcript Document
Creating the Government property assets of the future Making sense of a public estates strategy with real local control Andrew Smith, Chief Executive Hampshire County Council Why now? • £128bn current book value for local government property • £15bn p.a. capital spend • Unprecedented financial pressure • Lack of co-ordinated estates strategy and delivery approach • Strong desire for a local demand-led approach • Appetite for real reform – government is ready to remove barriers Government has recognised the wider public sector opportunity - the coordination of both capital and assets through a commissioning-based approach will maximise efficiencies, deliver improved services and other opportunities such as job creation Opportunities • Understand need • Shared services • Assets and capital assessed Commissioning • Driver for strategic approach procurement programme which could include greening agenda SMEs and apprentices £ benefits 20%+ Reduced need Construction, procurement, Source: SE IEP /Reading BC estimate 10-15% Construction, procurement Source: HCC Care Home case study Opportunities • Economic development • Inter authority Joined up programme (multi collaboration projects) 2-5% Construction, procurement One off project Source: SE IEP 0 Elapsed time Time Opportunities • Better delivery • Predictability The SE IEP estimate that a 20% saving on capital costs could be achieved through smarter procurement including the use of existing assets. In addition, a comprehensive approach to assets could generate £35bn in capital receipts over 10 years in addition to savings in revenue. £35bn in capital receipts could be raised over 10 years Total of £370bn worth of assets 3 £30 billion per annum in new capital investment generate modernisation / rationalisation plans £370bn existing buildings, one third of all non domestic stock Commissioning approach A local demand-led approach could significantly rationalise the public estate whilst maximising other benefits such as job creation and improved energy performance through retro-fitting Efficiencies + some surplus assets recycled as capital Case Study: Hampshire County Council Headquarters Refurbishment Fewer buildings, better used, higher performing and more sustainable Jobs in construction and supply chain; skills created for retrofit work • 75% more staff accommodated • 30% more space efficient • 4500m2 reduction in council’s use of office space • £200,000 per annum saving on running costs • 50% reduction in energy costs 4 The Big Idea – how the NIEP can support this approach • Co-ordination of local government and integral part of Capital and Assets Pathfinders • Procure once on behalf of many • Get collaboration and aggregation benefits • Build national leadership – further leverage • Leave local choice in place • Sponsored by CLG How to do it? The Barriers • • • • • Council sovereignty ‘not invented here’ Local capacity Fragmented budgets Collaborative arrangements do not exist The obstacles are not technical. Local government can now address some of the most complicated asset management challenges in government. Opportunities • • • • • • Benefits of joint working Reshape the market Savings / efficiency Demonstrating local government leadership Local choice Cross departmental and organisational working / geography • Improving the customer experience