Osborne: departments must look to privatise property
Chancellor George Osborne has today called on government departments to examine their assets, including property, and consider contracting them out or privatising them.
In a speech to the House of Commons this afternoon, Osborne announced details of how the forthcoming Spending Review will be carried out, which will set spending limits for every government department for 2011 – 2015 after its conclusion this autumn.
Osborne said: “For capital spending, we will undertake a fundamental review of spending plans to identify the areas of spending that will achieve the greatest economic returns.
“Departments will be asked to examine their assets and consider how they can be managed more effectively, and whether they need to be held at all.”
A separate document published alongside the speech, which sets out the timeframe and plan for the review in more detail, says departments are being asked to consider “the role of privatisation and contracting out where assets do not need to be held in the public sector.”
The Treasury has now confirmed that the assets concerned include property. The report also talks about how over-spending will be tackled throughout central and local government.
Osborne said: “First, we will build on the in-year savings that we have already made in order to deliver a step change in the drive for efficiency and value for money in the public sector.
“The new Efficiency and Reform Group at the heart of government will support departments to deliver savings in specific areas, including renegotiating contracts, maximising collective buying power and using benchmarking to improve performance.
“Departments will be asked to reduce administrative spending in central Whitehall and quangos by at least a third.
“Each Secretary of State will appoint a Minister with specific responsibility for driving value for money across their department.”
To lead the review, Osborne also announced the creation of a new committee of senior ministers to scrutinise public spending, called the Public Expenditure Committee.
Its five members will be Osborne, the chief secretary to the Treasury George Osborne, foreign secretary William Hague, Cabinet Office minister Francis Maude, and minister of state for the Cabinet Office, Oliver Letwin.
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Your survey relating to public sector cuts is too narrowly defined and will ultimately tell us nothing as it is limited to asking public sector jobs holders / consultants what they think to the planned cuts. Asking someone who is comfortably seated in the best carriages of the gravy train what they think to being asked to kindly get off is going to result in a very obvious response.
Working at a property consultancy firm i can understand using your assests more wisely.
There can be benifits to selling but this is usually a short term view only.
It would be better in my personal opinion to consolidate departments and staff and freeing up space which could then be rented and therefore generate income.
Selling ultimately benifits the purchaser only. We have investors and funds actively looking to purchase government assests as investors are aware of the benifit of purchasing government stock.
I cannot see why the govenrment does not actively look into purchasing commercial and residential properties and land that can be developed with the benifit of passing through planning and then selling off or renting these new assets and running this like a business.
Deficits does not mean cut spending it can mean to spend the money in areas that will generate more income over time which would be self sustaining.
Our company would and could be more than happy to assist and look forward to any communications from the government if such advise is sought.
Thanks for commenting, Al. We have asked how well they think their organisations will be able to make cuts and whether they agree with the policies. It may be that they’re worried about their own jobs but agree the coalition is making the correct calls on policy, which I think would be interesting (although I don’t know if that’s what it’ll show).
But for future surveys, who do you think we should be targeting and what should we be asking? We’re keen to give you the information that you think is most interesting so I’m open to suggestions. Comment here or email me at:
Thanks.
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