Hotel MonacoSeptember 18-21, 2011

Washington, DC

Living within BudgetsUK Government Property UnitUpdate to TWN20 September 2011

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Approach

• Current focus on central civil estate• High-level property strategy – agreed by PEX(A):

– Exit the non-core (mainly leasehold) buildings – return to landlord/sublet/dispose– Move people from the exited buildings into surplus space in the Core estate– Consolidate facilities management contracts– Improve the density, efficiency and flexibility of the retained estate– Enabler of changes in work practices

• Mechanisms to deliver:• National Property Controls • Property consolidation pilots in Central London and Bristol from 2011/12 – and rolling out to other

regions thereafter• Involve the private sector where it can add value beyond that achievable in the public sector

• Other Government estate• 60% of the £5bn savings are expected to come from NHS and MoD mainly operational estates

• GPU supporting MoDefense sales and consolidation• Lighter touch advising DHealth on NHS as required

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What Has Been Achieved?

• SOFTE 2010 published, articulating overall strategy, targets and progress• GPU structure established drawing on private sector expertise, OGC, and former GO network to deliver

national coverage• Lease moratorium:

– Since 1 June 2010, delivered £135M in annual cost reductions on central civil and over 400 exits– +£140M of asset disposal in FY 10/11

• NPCs established in Feb 2011 covering leases, acquisitions, asset disposals, FM and workplace standards • Launched London and Bristol pilots and developed pathfinder strategies• FM strategy agreed with Property and Facilities Management Board (PFMB)• Capability Improvement strategy agreed with PFMB

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GPU Workstrands

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London project

Bristol project

Regional projects

National Property Controls

Operational estate (MOD/NHS)

CONSOLIDATION

Policy / Strategy / Executive approval

DataStakeholder engagement

Finance

Benchmarking Workplace transformation

FM

Link to ERG workstreams

Capability improvement