Public Sector occupier research

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03 December 2013

GL Hearn and Realign Consulting have completed a survey of over 70 senior property managers within Local Authorities and the NHS throughout England and Wales. It examines how the public sector is responding to the challenges of the austerity programme, which for 2015/16 includes a challenging 10% reduction on top of the coalition Government’s previously announced cuts of 20% for Local Authorities.

Key Findings:

Budget protection and PFI investment has left the NHS in better placed in terms of property strategy and workplace quality - 58% of NHS respondents reported that over three quarters of their workspace meets their needs, compared to just 31% in Local Authorities.

Despite being hit hard, only 10% of Local Authorities see a lack of resources as a major issue, supporting the view that so far they have adjusted to doing more with less.

Over 80% of Local Authorities are engaged in local collaborative asset management initiatives with others in the public sector, but limited progress has been made towards the area-wide pooling of assets.

Despite cuts to funding, regeneration remains a high priority for most Local Authorities and there is so far little evidence of fund raising sales of surplus assets taking precedence.

Richard Grass, principal of Realign Consulting said “The Spending Review highlights the huge benefits to be gained from improved integration and “rewiring” of public services. Our survey suggests that to date Council property teams have been coping with fewer resources but it’s not clear where the capital and resource funding to help drive these changes is going to come from.

Jon Pinkerton, Director at GL Hearn said “Our survey indicates that, so far, success stories of large scale property collaboration initiatives are rare. The government’s £100m transformation fund is welcome, but the concern is that this will be spread too thinly to deliver the scale of changes to IT and real estate infrastructure needed to support the new service delivery models.”

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Our survey indicates that, so far, success stories of large scale property collaboration initiatives are rare. The government’s £100m transformation fund is welcome, but the concern is that this will be spread too thinly to deliver the scale of changes to IT and real estate infrastructure needed to support the new service delivery models
Jon Pinkerton
Director

GL Hearn

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