Capitalising on Public Sector Assets

Programme09:40 Introductory Remarks – David Werran, Chairman Governetz09:50 Bottom up Transformation – Capital Asset Pathfinders – John Connell, CLG10:05 The Role of Public Sector Assets in the Growth Agenda – Jim Bennett, Head of Corporate Strategy, Homes and Communities Agenda10:20 Rationalisation – Catalyst for Improved Service Delivery and Long Term Collaboration – The Worcestershire Council Asset Pathfinder – Alan Stokes, Worcestershire County Council10:35 Q&A10:45 Break

Programme11:00 Using the Workplace to Transform the Workforce and the Environment – BBC MediaCity – Alan Bainbridge, BBC Portfolio Director11:15 Mapping the Future of Public Service Delivery – Wigan Public Sector – Gillian Bishop, Corporate Director, Places11:30 Asset Management – West Midlands Property Alliance, Martin Forbes, Programme Manager11:45 Final Q & A12:00 Buffet Lunch

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)

CAPITAL AND ASSET PATHFINDERS John Connell john.connell@communities.gsi.gov.ukCapital and Asset Pathfinders (CAP) areas: Cambridgeshire, Durham, Hackney, Hampshire, Hull, Leeds City Region, Leicestershire/Leicester, Solihull, Swindon, Wigan and Worcestershire Wave 2: Bournemouth, Derby, Devon, East Sussex, Islington, Kent, Newcastle upon Tyne,Northumberland, Sheffield, Shropshire, Somerset, Surrey, Warwickshire, West Sussex, and Wiltshire 8

Summary : Can we release £bns from property if we managethe public sector estate as a single entity •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 We can: •Join Services up •Understand ALL capital Understanding •Reduce the and asset supply supply and estate size demand of Bns in •Release surplus capital public sector land and receipts •Understand assets we can buildings could Customer demand •Cash savings be raised •Procurement and finance join up 9

Customer Mapping is vital to understanding the effect of potential service changesCompared 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. 10

Mapping showed that the public sector estate is large anddiverse and this can lever economic and other outcomes 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 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. 11

Pathfinder business cases highlighted potentialopportunities and barriers Summary of Business Cases Public Sector Joint Fire & Village Police Station Better meets • 7 Pathfinders produced 12 business cases Co-location of a customer need • Net present value savings of £155m over 25 Fire & Police station freeing up years 2 sitesTown centreregeneration • 5 had integral regeneration benefits Co-locationproject • 3 used vacated public land to deliver newPotential to A joint enterpriseinclude housing centre, healthcouncil, several facility, council • 10 sought to achieve multiple outcomes offices, newGovernmentDepartments & primary school &Fire Service community centre Emerging Findings 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 12

Long Term Strategies showed substantial savings andservice improvements are possibleThe long term strategy „template‟ was developed in partnership with the Pathfinders LTS Success Criteria Findings The long-term strategy included • Substantial savings through a reduction outline outputs the partners are aiming to achieve over the in operating footprint of over 20% is 10 year period: achievable. – % reduction in floor space, • Wider outcomes identified – % reduction in buildings, • Regeneration – % reduction in the • Wider service transformation carbon footprint of • Customer service the estate improvements – amount raised through capital receipts • Community engagement – reduction in revenue costs through asset • Clear that public sector assets can drive rationalisation. local growth 13

Next steps: More areas utilising area based asset management and implementing savings/ service improvements Transparency - Support – Commitment – Publication of data LGG led Package Whitehall encouraging public passing the work to champion sector to share the sector who tackle barriers with data on their will role out Whitehall assets. tailored support Departments. LGG announced 2nd wave of Getting the Basics Right pathfinders: SustainabilityBournemouth, Derby, Devon, East Sussex, Facilities Management Islington, Kent, Newcastle upon Tyne, Northumberland, Sheffield, Shropshire, Space Utilisation Somerset, Surrey, Warwickshire, West Sussex, Benchmarking and Wiltshire. Asset Management System WHAT MORE CAN YOUR AREA DO? 14

Public sector assets and growthCapitalising on Public Sector AssetsJim Bennett10 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 providersHCA 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 Land Regeneration and affordable with local priorities housing  HCA assists local delivery with the right mix of: Delivery of local priorities – HCA and other public land assets – Affordable housing / regeneration investment – Enabling support and tools Enabling Aligning support public funding – Aligning public funding streams and tools“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  Supporting partners to prioritise, including phasing of developments over time Project  Supporting delivery of projects: solutions Structuring commercial propositions Developing innovation solutions  Access a range of tools, information and advice Hands on Viability assessment, Delivery Partner Panel Equity investmentOur 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 landHCA Land Existing P&R commitments Accelerated disposal of landOther government land Technical support to government departmentsEconomic 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 signet@hca.gsx.gov.uk 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

Public land and transparencyHow 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

Rationalisation – Catalyst for Improved Service Delivery and Long Term Collaboration Alan Stokes – Worcestershire County Council 10 November 2011www.worcestershire.gov.uk

32 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 Stepswww.worcestershire.gov.uk

33 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 PCTwww.worcestershire.gov.uk

34 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 organisationswww.worcestershire.gov.uk

35 “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 propertieswww.worcestershire.gov.uk

36 “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 processwww.worcestershire.gov.uk

37 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 boardwww.worcestershire.gov.uk

38 “Total Place” Experience - Mapwww.worcestershire.gov.uk

39www.worcestershire.gov.uk

40www.worcestershire.gov.uk

41 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 partnershipwww.worcestershire.gov.uk

42 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 programmeswww.worcestershire.gov.uk

43 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 essentialwww.worcestershire.gov.uk

44 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 laterwww.worcestershire.gov.uk

45 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.ukwww.worcestershire.gov.uk

46 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 issueswww.worcestershire.gov.uk

Mapping the future of public service delivery: Wigan Public Sector Gillian Bishop Corporate Director - Places Wigan Councilwww.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 managementwww.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 needwww.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 shiftwww.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 valueswww.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 detailwww.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 strategieswww.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 Zonewww.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 Ambulancewww.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 useswww.wigan.gov.uk

Overview Rationale Achievements Reflections

The West Midlands….famous for

The West Midlands….the geography

„…a West MidlandsProperty Alliance willprovide a co-ordinatedframework…‟ „…potential to deliver gross benefits of £640m….‟

WM Chief Executive Chair Senior Officer Representation from Sub-Region Leads Central & Regional Support Bodies • 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

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?” “There is no radical thinking!” “A lot of our assets are worthless” “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” “We want to use assets to stimulate growth”

Savings“Where are the savings?” • “Reductions in property expenditure” • Environment is „fluid‟ • What‟s the right cost? • What‟s the economic cost?

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

Economic Growth“A lot of our assets are worthless”“We want to use assets to stimulate growth” • Coherent economic masterplan • Link with Planning • „Packaging‟ and „Scale‟

Top Level Sponsorship“We‟ve been told just to get on with it” • Capacity and restructuring • Opportunity • Confidence

Final Thoughts “Failure is what success looks like in the middle”

Contact Details Martin Forbes Local Partnerships Layden House 76-86 Turnmill Street London EC1M 5LG Mob: 07899 965 739 martin.forbes@local.gov.uk www.localpartnerships.org.uk

Capitalising on Public Sector Assets

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