New Ways of Working Network

In a new study, Deloitte analysts look at the challenges facing the British government in its attempt to control property management costs. 

Last year, Government ministers reported saving over £100 million in running its central estate. Earlier this year, the Prime Minister announced plans to take surplus office space in 300 buildings and make it available for rent to small- and medium-sized companies. Initiatives such as a lease moratorium and other National Property Controls have helped lower property running costs (estimated at about £25 billion) but more is needed to get government property expense under control.

Deloitte suggests, “Key cultural changes such as a wholesale migration to flexible working, will be an essential ingredient to transforming government property in the medium term.”

Deloitte analysts talked with ten senior figures in government and the private sector to identify five key areas for action: 

1. Build an asset management profession. Make sure that good asset management and estates strategy is discussed at the executive level.
2. Join up corporate services. Coordinate property management with key corporate functions. 
3. Work better with the private sector. Examples: Outsourcing to a third-party provider, joint ownership models, payment by results schemes
4. Transform data collection and use. The Government Property Unit (GPU) has improved data collection and benchmarking but reporting is still weak or incomplete.
5. Build an integrated, collaborative strategy. Strike a balance between local and centralized property control.

Link to the Deloitte report: Space-based budgeting - Improving property management in the UK public sector (PDF), February 2012