Cut property waste urgently, says Tory advisor
The Conservatives should “urgently” tackle the inefficient use of central government property if they win at the next general election, a senior Tory advisor has said.
A Tory government should aim to vacate 10% of government office space within one year, according to Martin Read, the author of the Operational Efficiency Programme and a member of the Conservatives’ Public Sector Productivity Panel.
As part of a statement released yesterday by Shadow Chancellor George Osborne (pictured), Read said central government used 30% more office space per head than dictated by best practice.
He said: “This inefficiency needs to be addressed much more urgently. Property assets should be managed separately and user departments charged for the space they use. This would focus minds on the efficient use of resources.
“We should require 10% of office space to be vacated within a year, consolidating staff into fewer buildings, reducing running costs and freeing buildings for sale.”
Read was asked to advise the Conservatives on how they could quickly make back office efficiency savings to cut the public deficit.
Alongside former head of the Office of Government Commerce Sir Peter Gershon, who also sits on the Conservative panel, Read estimated that £12bn could be saved from government department budgets in 2010.
The Conservatives claim these back office cuts would be “over and above” savings already identified by the government.
- Cameron gets green light for £6bn savings
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My experience tells me that the principle of corporate management of property assets for large organisations combined with an “internal property charging” regime based on use of space which appears on P&L accounts of the Departments or silos is definitely the right direction to go.
It will not only focus away from departmental silo mentality helping with de-duplication, ToatlPlace and shared service but it will ensure that management at all levels in the Departments will understand the value of property/ space to their business or service. It will also better inform business decisions in terms of needs, utilisation, costs in use, and investment.
Not straightforward in set up but it will be worth the effort. Anyone want any help in developing a proposal let me know as I have recent past experience in this area with one of the largest building portfolios in the UK.
Thanks for your thoughts, Paul. I just added a link to here from your comment on James Grierson’s article. I’m sure that’s alright with you. Thanks, Rich
Richard – thats fine.
[...] Reported in PublicSectorUK.com, Read confirmed that Central Government uses 30% more office space per head than dictated by best practice. He said: “This inefficiency needs to be addressed much more urgently. Property assets should be managed separately and user departments charged for the space they use. This would focus minds on the efficient use of resources”. [...]
[...] month, Public Property UK reported that Conservative adviser Martin Read said the Conservatives should look to vacate 10% of its [...]
[...] Efficiency savings The Conservatives aim to save £12bn more than Labour in this financial year. This includes reducing property costs and spending on consultants. Tory adviser Martin Read says a Conservative government could vacate 10% of its office space in year… [...]
[...] as part of the Conservatives’ Public Sector Productivity Panel. He told the party they could vacate 10% of central government office space in this financial year. At the time, he said: “We should require 10% of office space to be [...]
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