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

£ benefits Time 0 Elapsed time Commissioning approach 2-5% Construction, procurement Source: SE IEP 10-15% Construction, procurement Source: HCC Care Home case study 20%+ Reduced need Construction, procurement, Source: SE IEP /Reading BC estimate Opportunities Understand need Shared services Assets and capital assessed Driver for strategic procurement programme which could include greening agenda SMEs and apprentices Opportunities Economic development Inter authority collaboration Opportunities Better delivery Predictability 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 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. Total of £370bn worth of assets £35bn in capital receipts could be raised over 10 years Joined up programme (multi projects) One off project 3

Hampshire County Council Headquarters Refurbishment 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 Fewer buildings, better used, higher performing and more sustainable £370bn existing buildings, one third of all non domestic stock 75% more staff accommodated 30% more space efficient 4500m 2 reduction in council’s use of office space £200,000 per annum saving on running costs 50% reduction in energy costs Case Study: Jobs in construction and supply chain; skills created for retrofit work Commissioning approach generate modernisation / rationalisation plans Efficiencies + some surplus assets recycled as capital £30 billion per annum in new capital investment 4

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 The Big Idea – how the NIEP can support this approach

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