£4.3bn property savings available, Telereal tells government
The government could save an extra £4.3bn on property costs over the next five years, according to a report published by outsourcing giant Telereal Trillium today.
The research, called Property Efficiency Solutions and carried out by economics consultancy SQW, says the government could save up to £1.4bn a year within five years.
The research examines the efficiencies that could be realised if current “best practice” was applied to management across the government estate.
It estimates the government could cut the amount space occupied by the civil service from 7.7m sq m of office space to 4.3m sq m through better property management.
The report says that despite the previous government’s ambitions for reducing the running costs of the civil office estate by £1 billion in annual savings, progress has been limited.
SQW lead researcher Steve Lucas said: “The government faces a massive challenge in seeking to get the deficit under control without harming frontline services. We have already seen a clear public commitment to cutting government waste. These findings prove that big savings are possible simply by using property more efficiently and accelerating the process of reform.
“The emergency budget on 22 June provides an opportunity for the new government to set much more ambitious goals than those adopted by the previous administration. This research enables them to be confident that those goals are achievable.”
Ian Ellis, executive chairman of Telereal Trillium said: “Reducing the deficit is a formidable task for the Government. The focus on reducing waste is welcome, but the challenge of turning rhetoric into reality cannot be underestimated. The public sector can no longer afford to adopt a sub-optimum approach to the management of its property assets.”
To read the report, click here: Trillium Report
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