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The importance of procurement, asset management and the wider efficiency agenda

The importance of procurement, asset management and the wider efficiency agenda. Irene Lucas Acting Permanent Secretary Communities and Local Government 28 th September 2010 – NIEP Conference: Local Solutions for a New Era. Coalition Government Priorities. Reduce the Budget Deficit

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The importance of procurement, asset management and the wider efficiency agenda

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  1. The importance of procurement, asset management and the wider efficiency agenda Irene Lucas Acting Permanent Secretary Communities and Local Government 28th September 2010 – NIEP Conference: Local Solutions for a New Era

  2. Coalition Government Priorities • Reduce the Budget Deficit • Localism • But also to: • Decentralise • Encourage Social Enterprise • Real choice and power in people’s hands

  3. LGA Productivity Workstreams • shared services, • data and transparency, • adult social care, • children’s services, • shaping markets and new models for service delivery, • democratic leadership, • workforce and skills, • tackling central government barriers and burdens • procurement and asset management

  4. Size of the public estate Social Housing £112bn Centrally owned £88bn • The public estate is worth at least £370bn • Local Authorities own close to £250bn of this • Running costs of £25bn per annum • Backlog maintenance of over £40bn • We know data is patchy at best Local Authority £128bn Local partners £44bn

  5. Fragmented capital investment results in a fragmented approach to assets and the associated services. In addition the total existing stock is already fragmented in terms of location and ownership. Map of existing asset base in Worcestershire Map of publicly funded new buildings in Leeds over the past 5 years Lift current and under construction Affordable Housing schemes funded through NAHP 08-11 LIFT current under construction Worcestershire has mapped the extent of the public estate identifying 1300 buildings under different ownership serving 556,000 people. Lack of transparent data made this exercise difficult and makes it difficult to contextualise whether the use of the estate is efficient. Worcestershire is using this map to look at opportunities to rationalise across the estate. (This examples show that the estate is 1/3 locally owned, 1/3 national owned and 1/3 housing) There were over 80 new buildings (excluding housing) constructed in Leeds over the last 5 years. These were constructed for different agencies largely on the basis of a national view of what was needed. 5

  6. There is a separation of service delivery arrangements from asset management and capital investment which inhibits opportunities to make services more productive and responsive to the needs of local people Public buildings provide the physical space to typically access a single service this makes it difficult for local people to access the range of advice they need e.g. someone who has lost employment may need to visit 4 different buildings Employment advice and benefits More information and transactional services are being delivered via avirtual space: egonline services through websites reducing the need for office space Occupational therapy Housing benefits Retraining Some areas are rationalising physical space into one-stop shops which can make it easier for people to access all the services they need facilitating a multi-agency response and development of multi-agency teams Marsh Lane police station in Sefton houses all 5 services for victims of domestic violence in one building. This led to 4 of the 5 services being merged. More health and adult care services are being delivered in the home oryour space: egTelecare reducing usage of the public estate 6

  7. Effective Procurement Better value from joined purchasing power Delivering sustainability Reduce the burden of procurement through Frameworks Innovative solutions

  8. Capital and Asset Pathfinders Proposition Co design with local places how they would deliver better services through property sharing and place based asset management. Principles Thinking from the citizen (demand) first Local “across” Local “up” Outcomes Incentivise local decisions on capital/ asset management Reassess responsibility and power for funding decisions Improved transparency of information Pathfinders Cambridgeshire, Durham, Hackney, Hampshire, Hull, Leicester/Leicestershire, Leeds City Region, Swindon, Solihull, Wigan, and Worcestershire …

  9. How we’re doing it “None of us is as clever as all of us”

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