capitalising on public sector assets

BBC MediaCityUK, Salford – 10 November 2011

DAVID WERRANGOVERNETZ

CAPITALISING ON PUBLIC SECTOR ASSETS

Programme

09:40 Introductory Remarks – David Werran, Chairman Governetz

09:50 Bottom up Transformation – Capital Asset Pathfinders – John Connell, CLG

10:05 The Role of Public Sector Assets in the Growth Agenda – Jim Bennett, Head of Corporate Strategy, Homes and Communities Agenda

10:20 Rationalisation – Catalyst for Improved Service Delivery and Long Term Collaboration – The Worcestershire Council Asset Pathfinder – Alan Stokes, Worcestershire County Council

10:35 Q & A

10:45 Break

11:00 Using the Workplace to Transform the Workforce and the Environment – BBC MediaCity – Alan Bainbridge, BBC Portfolio Director

11:15 Mapping the Future of Public Service Delivery – Wigan Public Sector – Gillian Bishop, Corporate Director, Places

11:30 Asset Management – West Midlands Property Alliance, Martin Forbes, Programme Manager

11:45 Final Q & A

12:00 Buffet Lunch

Programme

Top Down Policy Drivers

• Government Property Unit (GPU)• Communities and Local Government – Capital Asset

Pathfinders (CAP) projects

Public Service Delivery and Public Property

• Public Service Hubs:– Critical Mass– Rail Access– Sustainable Offices– Public/Private Sector

• Leaner and Greener – Part II: Putting Buildings to Work (7 November)

JOHN CONNELLCOMMUNITIES AND LOCAL GOVERNMENT


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CAPITAL AND ASSET PATHFINDERS

John Connell

[email protected]

Capital and Asset Pathfinders (CAP) areas: Cambridgeshire, Durham, Hackney, Hampshire, Hull, Leeds City Region, Leicestershire/Leicester, Solihull, Swindon, Wigan and

WorcestershireWave 2: Bournemouth, Derby, Devon, East Sussex, Islington, Kent, Newcastle upon Tyne,

Northumberland, Sheffield, Shropshire, Somerset, Surrey, Warwickshire, West Sussex, and Wiltshire

mailto:[email protected]

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Summary : Can we release £bns from property if we manage the public sector estate as a single entity

•Understand Customer demand

•Understand ALL capital and asset supply

Bns in capital receipts couldbe raised

We can: •Join Services up •Reduce the estate size

•Release surplus land and buildings

•Cash savings•Procurement and finance join up

Understanding supply and demand of public sector assets we can

• Initial analysis showed that central government funding on buildings grew to £30bn a year over the last 10 years, and that there are at least an estimated £385bn worth of public sector assets in total.

• Capital investment is top-down, siloed and fragmented. Assets are similarly treated in silos of ownership, and so is the advice given to localities.

So we worked with 11 pathfinders to

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Customer Mapping is vital to understanding the effect of potential service changes

Compared with the left drawing the changes are noticeable after 5 libraries are shut. 99% of population can still access a library within 30 minutes. Only 1% /about 3,000 residents cannot.

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Town Centre(black boundary)

Of the 590 non-domestic buildings in the town centre,

156 (28%) have been identified as public sector

Retail Core(blue boundary)

Of the 370 non-domestic buildings in the town centre,

129 (35%) have been identified as public sector

Mapping showed that the public sector estate is large and diverse and this can lever economic and other outcomes

Note: As gross internal area figures were not available, numbers of buildings has been used as a proxy. Analysis based on initial mapping of assets (with on-going work to quality assure these data) and the 2005 Generalised Land Use Database.

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Pathfinder business cases highlighted potential opportunities and barriers

• 7 Pathfinders produced 12 business cases

• Net present value savings of £155m over 25

years

•5 had integral regeneration benefits

• 3 used vacated public land to deliver new

housing

• 10 sought to achieve multiple outcomes

Getting from opportunity to outcome requires CEX/leader commitment/ leadership

Partnership working is difficult

There is variable capacity for this work locally

“Outsourcing” large scale developments to private sector is sub-optimal unless

public sector is a intelligent client

Summary of Business Cases

Emerging Findings

Co-locationA joint enterprise centre, health facility, council offices, new primary school & community centre

Public Sector Village Better meets customer need

Joint Fire & Police StationCo-location of a Fire & Police station freeing up 2 sites

Town centre regeneration project Potential to include council, several Government Departments & Fire Service

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Long Term Strategies showed substantial savings and service improvements are possible

LTS Success Criteria

The long-term strategy included outline outputs the partners are aiming to achieve over the 10 year period: – % reduction in floor

space, – % reduction in buildings, – % reduction in the

carbon footprint of the estate

– amount raised through capital receipts

– reduction in revenue costs through asset rationalisation.

Findings

• Substantial savings through a reduction in operating footprint of over 20% is achievable.

• Wider outcomes identified• Regeneration• Wider service transformation• Customer service

improvements• Community engagement

• Clear that public sector assets can drive local growth

The long term strategy ‘template’ was developed in partnership with the Pathfinders

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Next steps: More areas utilising area based asset management and implementing savings/ service improvements

Transparency -

Publication of data

encouraging public sector to share data on their assets.

Support –

LGG led Package

passing the work to the sector who will role out tailored support

Commitment –

Whitehall champion

tackle barriers with Whitehall Departments.

LGG announced 2nd wave of

pathfinders: Bournemouth, Derby, Devon, East Sussex,

Islington, Kent, Newcastle upon Tyne, Northumberland, Sheffield, Shropshire, Somerset, Surrey, Warwickshire, West Sussex, and Wiltshire.

Getting the Basics RightSustainability

Facilities Management

Space Utilisation

Benchmarking

Asset Management System

WHAT MORE CAN YOUR AREA DO?

JIM BENNETTHOMES AND COMMUNITIES AGENCY


Public sector assets and growth

Capitalising on Public Sector Assets

Jim Bennett

10 November 2011

Contents

HCA purpose and vision

Role of public assets in supporting local economic growth

HCA support for local delivery

The HCA roleWe are the people who help get things done…

Working with people and places to enable them to deliver homes, economic growth and jobs

Delivering programmes of investment

Making best use of our land and that of government/ other public bodies

From April 2012 the HCA will become the regulator of social housing providers

HCA Purpose: to contribute to economic growth by helping communities to realise their aspirations for prosperity and to deliver quality housing that people can afford

Our role: Delivering local priorities

Investment has to be aligned with local priorities

HCA assists local delivery with the right mix of:

– HCA and other public land assets– Affordable housing / regeneration

investment – Enabling support and tools– Aligning public funding streams

Delivery of local priorities

Enabling support and tools

Regeneration andaffordable

housingLand

Aligning public funding

“We are locally driven. We work with councils and other local partners, effectively targeting our investment and support at their identified priorities.”

Delivering local priorities

Working with Local Authorities at their request

Developing Local Investment Plans to:

– Support the local delivery of housing supply & economic growth

– Help reassess local priorities

– Act as a ‘prospectus for investment’

– Articulate the housing & regeneration offer required to underpin the ambitions of LEPs

Enabling Local Partners

Prioritisation

Project solutions

Hands on

Supporting partners to prioritise, including phasing of developments over time

Supporting delivery of projects: Structuring commercial propositions Developing innovation solutions

Access a range of tools, information and advice Viability assessment, Delivery Partner Panel Equity investment

Our offer to local partners is focused on:

Strategic and commercial advice on land disposal

Supporting delivery of market and affordable housing

Fostering local partnerships and enabling local authorities to take full advantage of new incentives

Investing in Land and regeneration

HCA land development and disposal strategy will deliver 3,000 new homes by 2015

Pioneering “Build Now, Pay Later” approach of deferred payment

Making best use of HCA and other public land

Economic Assets Programme working with LAs to secure local economic development

“We play a key role in Governments ambition to make the best use of public land to benefit communities”

Our role in land

HCA Land

Existing P&R commitments

Accelerated disposal of land

Other government land

Technical support to government departments

Economic assets

52 coalfield assets

Over 300 sites to transfer value of £300m transferred September 2011

Delivery governed by Local Stewardship arrangements

Capital and Assets Pathfinders Business cases from initial 11 areas and other work

shows that if we base our strategy around 3 factors, we can realise the benefits of a joined up (across local areas), co-designed (central-local), professional (expertise to match scale of savings possible) approach.– Transparency: showing where the opportunities are by

mapping all public sector assets – Capacity: accelerating other areas take up of the broad

approach we developed and professionalising the overall approach

– Barrier Busting: central government in particular removing confusion and disincentives.

Second wave of 15 CAP areas confirmed in August with LGG co-ordinating support including from HCA

CAP – HCA offer to localities

Asset mapping tools [email protected]

Supporting disposal and development of public sector land identified as surplus

Making connections between local asset rationalisation strategies and central Government departments asset disposals

Can work with any areas - not just pathfinders – where this is their priority

mailto:[email protected]

Public land and transparency

How the HCA can support transparency between partners:

Shared map based viewing platform (SIGnet)

Growing library of information on land, priorities and local communities supplied by partners

Communication point to relate local and national intelligence

Spatial analytical tools to support localised decision making

National coverage tailored to fit local needs

Supporting growth

The Plan for Growth highlights the importance of construction to economic growth and housing supply to labour markets

HCA investment and enabling of housing supply and regeneration supports growth at local level

Working with Local Enterprise Partnerships that identify housing, land and regeneration as growth priorities

Supporting local partners bidding for the Regional Growth Fund and Enterprise Zones

Accelerating disposal of HCA and other public land

“We are committed to regeneration in the most deprived areas, where our investment and expertise support local aspirations and delivers economic growth”

Conclusions

HCA can support local approaches to rationalising public sector assets

We have models and tools that can support disposal and development to– realise savings– support local housing and economic growth

priorities

homesandcommunities.co.uk

/HCA_UK

/homes-&-communities-agency

ALAN STOKESWORCESTERSHIRE COUNTY COUNCIL


www.worcestershire.gov.uk

Rationalisation – Catalyst for Improved Service Delivery and

Long Term Collaboration

Alan Stokes – Worcestershire County Council10 November 2011


Presentation• Asked to cover three areas specifically

• How we got the partners together• Why our group is seen as delivering change• Principles of our long term strategy

• Partnerships have evolved • Pre Total Place• Total Place• Capital and Asset Pathfinder and 10 Year Strategy• Next Steps

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Pre Total Place• Environment

• Worcestershire Partnership• WCC Property Services• Strong history and capacity for asset review

• Bromsgrove experience• Surplus / under performing assets• Cross organisation discussions• Mutually beneficial opportunities

• Worcester Office Rationalisation• Partnership with PCT

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Pre Total Place – Summary• Had a high level strategic governance framework in

place – Worcestershire Partnership• Had some history of collaborative working with some

public sector partners• Had begun to build trust at asset manager level across

organisations• Established some basic ground rules for collaborative

working, (no ransoms, transactions on a commercial basis, etc.)

• Had evidence of tangible benefits flowing from sharing information and a collaborative approach across organisations

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“Total Place” Experience• Focus on preparing a map showing all public

sector property interests• What• Where• Current performance• Usage now• Future service demands

• Clusters of properties on the map showed where to focus attention

• Attempt to RAG properties

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“Total Place” Experience (2)• What we found

• Disparate systems and very variable data quality• Unwillingness to share information• Anxiety around elements of vested interest• Difficulties in imposing discipline on the process• Variable quality communications• Still largely seen by most partners as a property

rationalisation process

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Total Place” Experience (3)• What we did in response

• Set up Steering Group and Technical Group• Provided Project Management support• Adopted a single system for the mapped data• Provided resources to create the map• Developed an effective communication plan• Used the maps as the basis for locality based

workshops• What we did not do

• Wait for a perfect data set before using the maps• Expect to get all partners fully on board

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“Total Place” Experience - Map

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Capital and Asset Pathfinder• Focus on delivery• Identified some specific projects

• Market Towns• Pershore• Droitwich• Broadway

• Joint Police and Fire Stations• Collaborative approach to accommodating and

delivering staff training• Lead role shared across the partnership

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Capital and Asset Pathfinder (2)• Community Model

• Takes it wider than the usual public sector bodies• Recognition that different localities present different

opportunities• Needs• Assets• Partners • Capacity of third sector• Ability of community to help itself

• Need to fully engage with wider service change programmes

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Capital and Asset Pathfinder (3)• What we learned

• Don’t talk forever, do something!• Locality factors require flexibility of approach• Communications – Need to engage with community

interest groups at the right time• Be ambitious but also be prepared to start small and

configure projects so that other partners can join later• Partners will need support and challenge• Strong Project Management essential

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10 Year Strategy• Principles behind the 10 year strategy

• The number of buildings used to deliver public sector services will reduce

• Adopt a phased approach to projects• Phase 1 – co-location of services and asset

rationalisation• Phase 2 – sharing basic FM and operational

support• Phase 3 – service alignment• Start with a coalition of the willing but be prepared

to expand to accommodate others later

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10 Year Strategy (2)• Set ambitious targets and focus on poor

performing services or properties• Flexibility – one size does not fit all• Engage with Stakeholders• Syncronise with other major change

programmes

• Capital and Assets Pathfinder – A Strategy for the Future available at www.worcestershire.gov.uk

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http://www.worcestershire.gov.uk/


Next Steps• Better Use of Property programme

• Systematic review of worst performing buildings• Specific target for office cost reductions• Remove 25% of non-schools estate over 4 years

• Revisit area based workshops and refresh priorities• Asset rationalisation priorities• Service rationalisation priorities• Localism issues• Economic regeneration issues

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ALAN BAINBRIDGEBBC


BBC MEDIACITYUK

GILLIAN BISHOPWIGAN COUNCIL


www.wigan.gov.uk

Mapping the future of public service delivery:Wigan Public Sector

Gillian Bishop

Corporate Director - Places

Wigan Council

www.wigan.gov.uk

Overview

• Focus for Assets across public sector • Place this within a Wigan context• Outline the outcomes from the Capital and

Asset Pathfinder• Demonstrate the model for future cross

sector asset management

www.wigan.gov.uk

Total Place to Capital and Asset Pathfinders• As part of the Greater Manchester Total Place we

identified that £1.9 billion of public sector money came into Wigan

• Total Place surmised that the future of public sector transformation was to deliver services in an integrated fashion with the citizen at the heart of service redesign

• The Capital and Asset Pathfinder aimed to take the same approach to our plans for asset management – buildings designed to meet customer need

www.wigan.gov.uk

Capital and Asset Pathfinder Aims• To seek out efficiencies and opportunities

to improve the experience for the citizen through– Mapping public sector assets across Wigan and

considering a joint asset management plan can accelerate efficiencies and improvements

– Understand the role of assets in service delivery – particularly in the light of new ways of working and channel shift

www.wigan.gov.uk

Wigan

• 2nd largest district in Greater Manchester with a population of 306,000

• 77 square miles, of which 70% is green or open space

• Geographical advantage

• 67th most deprived local authority

• 29 of Wigan’s 200 neighbourhoods fall within the 10% most deprived in England

• 70% ‘Green’

www.wigan.gov.uk

Wigan – Opportunities and Challenges

• High level of public sector ownership – particularly in Wigan Town Centre (Directly and indirectly up to 35%)

• Strong will to collaborate and co-locate across the public sector

• Low land and property values

www.wigan.gov.uk

Mapping Assets

• Working together with public sector partners we mapped all the assets

• Opportunities Workshop – Externally supported

• Through this we were able to identify pockets of opportunity that we then explored in more detail

www.wigan.gov.uk

Public Sector Asset Management • Through the Capital and Asset Pathfinder

work, we have developed a Public Sector Asset Management agreement that aims to:– To use the opportunities created to help drive

future economic growth.– To provide a cohesive appropriate service

tailored to customer needs and requirements.

www.wigan.gov.uk

Office Accommodation Strategy• A high number of public sector office buildings in Wigan were not fit

for purpose and would have needed significant investment if they were to be renovated.

• The office accommodation strategy focused on delivering efficient office space and releasing buildings for future sale

• The Council has already been able to vacate five buildings which were not fit for purpose and has a longer term target to reduce the number of office buildings from 32 to five. The PCT has also been able to vacate unfit accommodation due to its move to the Joint Service Centre

• The development of the Joint Service Centre has allowed Wigan Council and its partners to review their office accommodation strategies

www.wigan.gov.uk

A Major Shared Project• Joint Service Centre• A Council led project in

partnership with Leisure and Culture Trust, PCT and Housing

• Offering– Information & Learning

Zone, fronted by a One Stop Shop facility

– Neighbourhood Zone– Healthy Living Zone– Democratic Zone

www.wigan.gov.uk

Joint Service Centre• To provide our customers with

better access to better quality public services and facilities.

• Enhanced service provision within specific areas of identified need including:– health improvement;– housing;– central library and information

centre;– democratic and community

engagement– Customer focus

www.wigan.gov.uk

Future projects & plans – Moving to Business as Usual• Maximizing land values: Re-siting a GP clinic on a Fire Station site

and packaging the released land with Local Authority land – ideal for housing development

• ‘Sweating’ our Assets: – Relocating Acute Trust Services into a LIFT building by transferring

office staff into Local Authority owned offices.– Redeveloping the main Fire Station site to provide new Fire Station

alongside possible opportunities for Ambulance and Police– A cross public sector review of Depots aiming to create a joint

rationalisation plan• Recycling: Utilizing a redundant Local Authority site to build a new

LIFT building which will have space for Job Centre Plus and North West Ambulance

www.wigan.gov.uk

Looking Ahead

• Through our work we have created:– A highly aspiration and raised ambition for

Wigan– A long-term strategy owned by all partners– A cohesive approach to assets and capital

across Wigan’s public sector– Delivering maximum value from our assets for

our communities: One building many uses

MARTIN FORBESWEST MIDLANDS PROPERTY ALLIANCE


Overview

Rationale

Achievements

Reflections

The West Midlands….famous for

The West Midlands….the geography

‘…potential to deliver gross benefits of £640m….’

‘…a West Midlands Property Alliance will provide a co-ordinated framework…’

• Challenge• Advice & Support• Communication• Stewardship of Funding

FUNDING THEMES•Knowing where assets are and how they are performing

• Increasing multi-agency occupation• Generating efficiencies from Facilities Management

Central & Regional Support Bodies

Senior Officer Representation from Sub-Region Leads

WM Chief Executive Chair

Achievements

• £192m revenue savings over ten years

• Project driven property networks and collaboration in every sub-region

• Cross fertilisation of learning through guidance and workshops

Reflections

“Where are the savings?”

“A lot of our assets are worthless”

“There is no radical thinking!”

“We want to use assets to stimulate growth”

“Service Directorates haven’t decided future delivery models”

“The IT system won’t support that”

“We’ve been told just to get on with it”

“Where are the savings?”

• “Reductions in property expenditure”

• Environment is ‘fluid’

• What’s the right cost?

• What’s the economic cost?

Savings

Innovation“There is no radical thinking!” “The IT system won’t support that”

“Service Directorates haven’t decided future delivery models”

• ‘Thinking’ or ‘Doing’?

• Defining the boundaries of what is achievable

• Policy and legislative constraints

• Coherent economic masterplan

• Link with Planning

• ‘Packaging’ and ‘Scale’

Economic Growth“A lot of our assets are worthless”“We want to use assets to stimulate growth”

• Capacity and restructuring

• Opportunity

• Confidence

Top Level Sponsorship“We’ve been told just to get on with it”

Final Thoughts

“Failure is what success looks like in the middle”

Contact Details

Martin Forbes Local PartnershipsLayden House76-86 Turnmill StreetLondon EC1M 5LG

Mob: 07899 965 739

[email protected]

www.localpartnerships.org.uk

THANK YOU

OVERBURY.COM


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