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Positive Outcomes

17 Feb
16:10
Government property savings – a drop in the ocean

Government property savings – a drop in the ocean

Submitted by Alan Kemp, EC Harris, Head of Central Government
6 Comments (8 Ratings)
Alan Kemp Biography

Francis Maude’s announcement  that the Government  has saved £130m on its property costs is good news and a step in the right direction, but it is still a drop in the ocean when compared to the circa £20 billion total cost of running the public sector estate.

Most of the savings to date can be attributed to tighter control of new leases and new buildings as well as better use of the estate through initiatives such as the sharing of offices between different departments.

However, there is still a vast pool of savings which remain untapped. We believe that a realistic target should be savings of between £400m-£500m which are achievable through making the best use of space on the government estate, mothballing empty buildings and moving to genuine flexible working. Departments who have already implemented this have realised savings of up to 30% on their estate costs, for example the Department for Business, Innovation and Skills.

The key question is whether Government departments have the appetite to work together effectively in order to achieve the available savings. A cultural change is needed; from commitment at the top level; from management to be willing to allow innovation into the process of estate management and use; and from the overall workforce to embrace new ways of working, such as flexible and home working options.

Until this happens the Government is only likely to trim the edges of the problem as opposed to making significant cuts into the costs of its property…

6 Comments

Interesting... I recall that Philip Green was commissioned by the Government to look into savings that could be made through procurement and concludedthat there these were potentially large but that mindsets needed to change and sytems need to be linked up. As you say, Alan, Government departments have got to work at this and have the right appetite but linked to appetite is hunger and are they hungry for it ? Probably not hungry enough.

Submitted at 23/02/2012 17:03:28 by David Botley

Interesting... I recall that Philip Green was commissioned by the Government to look into savings that could be made through procurement and concludedthat there these were potentially large but that mindsets needed to change and sytems need to be linked up. As you say, Alan, Government departments have got to work at this and have the right appetite but linked to appetite is hunger and are they hungry for it ? Probably not hungry enough.

Submitted at 23/02/2012 17:00:47 by David Botley

Interesting... I recall that Philip Green was commissioned by the Government to look into savings that could be made through procurement and concludedthat there these were potentially large but that mindsets needed to change and sytems need to be linked up. As you say, Alan, Government departments have got to work at this and have the right appetite but linked to appetite is hunger and are they hungry for it ? Probably not hungry enough.

Submitted at 23/02/2012 17:00:33 by David Botley

Interesting subject and your views are pertinent, something that we are covering at University and has helped to show that my dissertation is topical. Private sector certainly is able to deliver these savings earlier.

Submitted at 21/02/2012 12:15:22 by Simon Bourne

This was an interesting read and has helped me with some research at university.

Submitted at 20/02/2012 23:16:41 by Alex

This is an account of the problems that have been apparent in the public sector for many years. Until government departments realise that investment is required to unlock potential savings in the public sector estate, this will continue to be the case.

Submitted at 20/02/2012 13:40:00 by Matt

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