Today the Commission is publishing a detailed guide to how councils can manage their assets better. It is based on the experience of six case study councils that are using their land and property assets in innovative and creative ways to maximise their value to the public.
The guide follows the recent Audit Commission study Room for improvement which found that councils in England could make much better use of their £250 billion worth of land and property. As Room for Improvement showed, local authorities and other local public bodies, could take a more rigorous and strategic view of their property portfolios.
For example:
- Lancashire County Council: uses an annual property performance report to help rationalise how it uses land and buildings. The Council saves £450,000 a year in maintenance costs and has improved the quality of its buildings, and cut emissions of CO2.
- Sevenoaks District Council: secured higher savings than comparable local authorities by getting councillors and officers to work more closely to scrutinise assets. By disposing of surplus property the council cut its maintenance backlog by £221,000 and made revenue savings of £304,000 a year.
- Wandsworth Borough Council: gave its assets rental values so managers knew how much it costs the council to occupy property; as a result they have been more creative, made savings and maximised capital receipts.
- Wychavon District Council: used its property holdings to boost the local economy and improve access to public services. The council itself developed a superstore to support regeneration, earning the council rent worth £595,000 a year; it also organised the building of a community hospital on council premises.
- East Riding of Yorkshire Council: made efficiency savings worth £4million through intense study of its asset base. The Council's Corporate Property Information System centralised all its asset data at a cost of only 0.5 per cent of its property revenue expenditure.
- Hampshire County Council: runs an ambitious programme to save money, improve services and transform working practices across the council.
The Commission is publishing a separate briefing on strategic asset management for councillors. It offers advice on how elected members can ensure their Council manages its property. Aimed at all councillors, it will interest those in Council Cabinets, and councillors with scrutiny or audit responsibilities.
Audit Commission Deputy Chairman, Bharat Shah said:
'Councils across the country can learn from these innovative examples. These councils have been pragmatic: they have shared assets and worked closely with partners.
'But they have also been imaginative. Thinking of new ways of making resources (example) at their disposal work harder, they will be better prepared to tackle the effects of the recession.
'The briefing for elected members provides councillors - who are at the heart of improvement - with the information they need to champion strategic asset management.'
ENDS
Notes to editors
The Research
The study rests on qualitative and quantitative research including:
- Detailed case study fieldwork at 22 councils.
- A representative survey of 80 council directors of finance, carried out by Ipsos MORI.
- A review of Use of Resources (UoR) scores for asset management and performance assessments from 2005 to 2008 provided by district auditors.
- A review of a sample of 20 per cent of councils' property asset management plans.
- A review of all their 2007/08 annual efficiency statements, as well as bids by councils to acquire 'unitary' status.
'Estate' or 'Assets'
Terms like 'estate' or 'asset' in this report relate only to land and property or buildings that councils own outright and on long lease which they can sell. It does include housing stocks but not those managed by ALMOs. The report does not address fixed infrastructure assets such as roads and highways or public parks, or movable assets such as computer equipment, fleet vehicles or stock.
About the Audit Commission
The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone.
Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers, auditing the £200 billion spent by 11,000 local public bodies.
As a force for improvement, we work in partnership to assess local public services and make practical recommendations for promoting a better quality of life for local people.