Advisor: Lord Carter of Coles Lord Carter of Coles is a Labour Peer who, in addition to a career in business, has advised the Government on a wide range of issues and has chaired a number of government reviews. In 1985, he founded Westminster Health Care which he built into a leading health care provider and sold in 1999. He is a private investor and director of companies in the fields of insurance, healthcare and information technology. He was Chair of Sport England from 2002 to 2006, was a member of the Home Office Board and of HM Treasury's Productivity Panel. He was assisted in this workstrand by Lord Hart of Chilton, Sir Christopher Howes, Geoff Gillham, Simon Roberts and Mike Whittles. Summary recommendations: 1 the Government should create a new central property function to drive efficient use of property across the whole of the public sector. It would be a small strategic resource, which would work closely with HM Treasury teams as well as with organisations across the public sector and, where necessary, draw on privatesector expertise. Its main roles would be to provide: • a strategic overview of rationalisation and disposal; • property standards and advice; and • coordination and oversight of property performance. 2 in producing new departmental spending plans, HM Treasury should take steps to ensure that departments make choices in their capital investment plans which deliver a rationalised and more efficient estate. The new central property function would assist HM Treasury teams in this process; 3 the public sector should be more consistent and transparent in the data it collects and publishes in relation to property management and usage. In particular, organisations are encouraged to publish information about the core, surplus, and intermediate property assets held. All local public services should also be encouraged to follow best practice and use the audit agencies' value for money indicators, which should be closely linked to the Audit Commission's 'use of resources' assessment; and 4 HM Treasury and Communities and Local Government should together investigate whether a depreciation mechanism for local authorities and other local delivery bodies would be workable, considering in particular the advantages and disadvantages of a depreciation charge and any potential impact on the public finances. |
4.1 This workstrand has found that there is significant scope for public sector property and land to be used more efficiently and effectively. The recommendations for strengthening accountability and performance management, set out in the Executive Summary of this document, are a crucial part of the new appraoch, outlined in this chapter, for improving the efficient use of property and are integral with the property-specific recommendations set out in paragraph 4.5 of this chapter.
4.2 Over the next 10-year period, this workstrand estimates the potential for savings from improved efficiency to be around £20 billion in receipts from property disposals (excluding council housing), and savings in running costs of up to £5 billion a year by the end of that period. Departments are likely to need to prioritise investment in order to pump-prime the rationalisation of their estates.
4.3 Disposals need to be carefully planned to maximise value for the public sector, especially in the light of current property market conditions.
4.4 Cultural and managerial change is key to achieving a step-change in performance. Some organisations have already substantially met this challenge, and others can learn from them. Principles of good practice need to be applied consistently across all parts of the public sector.
4.5 To achieve the new approach to property management, this workstrand recommends:
• a new central property function to drive efficient use of property across the whole of the public sector;
• steps to facilitate investment in property transformation; and
• specific actions to achieve change across the wider public sector.