Public Sector Excellence EXPO 25 th June 2 01 9

1. Surrey County Council – Development of the Asset and Place Strategy Public Sector Excellence EXPO 25th June 2019

2. Session Agenda • About Surrey • Change and why it was needed • What we did • The strategy • Implementation • Q&A

3. Surrey County

4. What assets does the Council have? Operational assets: • These are buildings from which the Council runs its services, e.g. fire stations, offices, childrens’ centres, libraries, schools, youth centres, adult learning centres, CRCs etc • c400 schools and 300 operational properties • Cost £17m pa, with £38m maintenance backlog Non-Operational assets: • These are buildings the Council owns and leases out to other users and include houses, business centres, former schools, green spaces, car parks and small ‘ad-hoc’ pieces of land. • c1200 • Should generate an income but currently break even in terms of income v expenditure Investment portfolio: • Are intended to produce a revenue income stream. • Are held directly, by SCC and via the wholly owned group of companies known as the Halsey Garton Group. • 29 properties, worth £425m

5. The need for an asset review The Council has ambitious plans set out in the Community Vision for Surrey to 2030. But: • Asset rich/cash poor • Assets not delivering a good enough return in all areas • Not all assets are needed/should be retained • Economic growth has faltered • Infrastructure issues – road and IT network issues: impact on growth The aims of the asset review: • Fit for purpose asset portfolio • Generate income – revenue and capital • Improve places and contribute to economic growth

6. What did we do? • Engagement with stakeholders – OPE; Chief Execs; LEPs; local and county members • Joint review of public sector assets within each district/borough plus health and blue light sectors • Analysis of a sample of 50 sites – options appraisals: art of the possible via external consultants • Review of whole asset base – identification of key problem areas • Independent Advisory Panel

7. High leveltimeline

8. The result • Asset and Place strategy – includes an approved option appraisal process for all individual asset reviews • 5 page action plan for delivery • Prioritised list of projects, including joint development proposals with public sector partners • Sites for 650 new homes, deliverable within 5 years, from a review of 50 sites • Understanding of areas of focus for next steps

9. Asset and Place Strategy - context Key outcomes SURREY GROWTH STRATEGY • Increased GVA • Infrastructure devpt. Whole of Surrey • Affordable Homes • Jobs and skills • Co-located services • Health benefits • Digital infrastructure SCC plus public sector partners SURREY ASSET AND PLACE STRATEGY • £25m revenue income • Future modern op. estate Surrey County Council

10. Asset and Place strategy - Key strategic principles

11. Asset approach Operational assets:- Review all operational assets over 3-5 years • Reduce from 300 to 100 • Invest in high quality office locations • Build service strategies of property requirements over next 3-5 years • Link to local master-planning and consolidation of services • Save £10m pa by 2024 Non-operational assets:- Review all 1200 assets over 2 years • Rationalise – reuse; dispose; develop • Potential for £150m capital receipts over 5 years, plus new homes and commercial units to promote growth Corporate Landlord model:- Implement fully, including decision-making - Invest in what we keep

12. Implementation • Not the first Asset Strategy in Surrey – need to implement findings • Needs to be a live strategy – built into every decision • Developing the Strategy is the easy bit - ‘turning the tanker’ • Corporate buy-in will take time – property impacts are the last thought • Resource intensive to deliver outputs • Change requires service consultation – savings dependant on outcomes/timescales