The public sector workforce can become £8bn more productive, all through improving the workplace and working more flexibly. Even more savings can be made by working with local public and private sector partners to reduce the size of estates and 'green up' what's left to the state. But what does this mean for the average local authority?
Mapping
Knowing exactly what you own and where sounds like a given for any business, but many councils do not hold this information due to the vast size of their estates and mixed data systems. The Department for Communities and Local Government (CLG) recognised the problem and in August published a static map of public assets.
It's a start, but local authorities need a live system which can be updated easily and regularly, with a mix of information including how a building is being used and its environmental performance. Only then can strategic decisions about the local estate be made sensibly.
Property management
Centralising your property management in a central property unit makes it easier to know what you own, a recommendation in our Leaner and Greener report, published earlier this week. Many authorities are already doing this, and are now beginning to think of property not as an asset but as a cost.
The leadership of chief executives and council members in getting behind rationalisation programmes is perhaps the most difficult thing for a civil servant, but also the most important. The business case is there: £7bn in savings can be made by cutting the space the public sector occupies by 20-30% and aggregating procurement. Each individual authority needs to take this case to their leaders and gain the sponsorship they need to get projects off the ground.
Partnership
Real savings can then be unlocked in partnership working in property management with other service delivery bodies in the local area such as fire, police and health services. We suggest a variety of models for governance of these partnerships but it comes down to trust. Local Strategic Property Forums formed with representatives from different service delivery bodies will facilitate discussion about how property can be shared and/or disposed on a project-by-project basis.
Property partnerships also make it easier for local authorities to make much needed energy efficiency savings. Economies of scale mean a quicker return on investment, an important consideration when civil servants find it hard to sell something with a payback longer than five years. Property partnerships should also make it easier for local authorities to invest in spend to save and renewable programmes, an imperative when the Carbon Reduction Commitment levy of £12 per tonne has increased utility bills by up to 8%, while energy costs have concurrently risen by 15-20% over the last year.
Flexible working
Moving people into more efficient buildings, promoting flexible working and developing more flexible spaces has been shown to reduce the number of sick days and increase staff productivity. If a property team can lead the way to a building-led approach to increase workforce productivity by just 5%, then you will have your slice of the £8bn saved.
Rachel White is manager of the Westminster Sustainable Business Forum
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