"Capitalising on Public Sector Assets" was a seminar held by Overbury in conjunction with Gorvernetz on November 2011 at MediaCity, Salford. Overbury are the UK's leading fit out and refurbishment specialists. Visit www.overbury.com for more information.

1. BBC MediaCityUK, Salford – 10 November 2011

2. DAVID WERRAN
GOVERNETZ
CAPITALISING ON PUBLIC SECTOR ASSETS

3. 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

4. 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

5. Top Down Policy Drivers
• Government Property Unit (GPU)
• Communities and Local Government – Capital Asset
Pathfinders (CAP) projects

6. 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)

7. JOHN CONNELL
COMMUNITIES AND LOCAL GOVERNMENT
CAPITALISING ON PUBLIC SECTOR ASSETS

8. 8
CAPITAL AND ASSET
PATHFINDERS
John Connell
john.connell@communities.gsi.gov.uk
Capital 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

9. 9
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
could
be 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

10. 10
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.

11. 11
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.

12. 12
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-location
A joint enterprise
centre, health
facility, council
offices, new
primary school &
community centre
Public Sector
Village
Better meets
customer need
Joint Fire &
Police Station
Co-location of a
Fire & Police
station freeing up
2 sites
Town centre
regeneration
project
Potential to
include council,
several
Government
Departments &
Fire Service

13. 13
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

14. 14
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 Right
Sustainability
Facilities Management
Space Utilisation
Benchmarking
Asset Management System
WHAT MORE CAN YOUR AREA DO?

15. JIM BENNETT
HOMES AND COMMUNITIES AGENCY
CAPITALISING ON PUBLIC SECTOR ASSETS

16. Public sector assets and growth
Capitalising on Public Sector Assets
Jim Bennett
10 November 2011

17. Contents
 HCA purpose and vision
 Role of public assets in
supporting local economic
growth
 HCA support for local
delivery

18. The HCA role
We 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

19. 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 and
affordable
housing
Land
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.”

20. 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

21. 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

22. 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”

23. 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

24. 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

25. 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

26. 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

27. 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”

28. 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

29. homesandcommunities.co.uk
/HCA_UK
/homes-&-communities-agency

30. ALAN STOKES
WORCESTERSHIRE COUNTY COUNCIL
CAPITALISING ON PUBLIC SECTOR ASSETS

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

32. www.worcestershire.gov.uk
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
32

33. www.worcestershire.gov.uk
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
33

34. www.worcestershire.gov.uk
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
34

35. www.worcestershire.gov.uk
“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
35

36. www.worcestershire.gov.uk
“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
36

37. www.worcestershire.gov.uk
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
37

38. www.worcestershire.gov.uk
“Total Place” Experience - Map
38

39. www.worcestershire.gov.uk
39

40. www.worcestershire.gov.uk
40

41. www.worcestershire.gov.uk
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
41

42. www.worcestershire.gov.uk
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
42

43. www.worcestershire.gov.uk
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
43

44. www.worcestershire.gov.uk
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
44

45. www.worcestershire.gov.uk
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
45

46. 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
46

47. ALAN BAINBRIDGE
BBC
CAPITALISING ON PUBLIC SECTOR ASSETS

48. BBC MEDIACITYUK

49. BBC MEDIACITYUK

50. BBC MEDIACITYUK

51. BBC MEDIACITYUK

52. BBC MEDIACITYUK

53. BBC MEDIACITYUK

54. BBC MEDIACITYUK

55. GILLIAN BISHOP
WIGAN COUNCIL
CAPITALISING ON PUBLIC SECTOR ASSETS

56. www.wigan.gov.uk
Mapping the future of public service
delivery:
Wigan Public Sector
Gillian Bishop
Corporate Director - Places
Wigan Council

57. 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

58. 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

59. 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

60. 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’

61. 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

62. 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

63. 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.

64. 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

65. 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

66. 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

67. 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

68. 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

69. MARTIN FORBES
WEST MIDLANDS PROPERTY ALLIANCE
CAPITALISING ON PUBLIC SECTOR ASSETS

71. Overview
Rationale
Achievements
Reflections

72. The West Midlands….famous for

73. The West Midlands….the geography

74. ‘…potential to
deliver gross
benefits of
£640m….’
‘…a West Midlands
Property Alliance will
provide a co-
ordinated
framework…’

75. • 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

76. 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

77. 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”

78. “Where are the savings?”
• “Reductions in property expenditure”
• Environment is ‘fluid’
• What’s the right cost?
• What’s the economic cost?
Savings

79. 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

80. • 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”

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

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

83. 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

84. THANK YOU
OVERBURY.COM
CAPITALISING ON PUBLIC SECTOR ASSETS