Government Could Save £7bn A Year

Eric Pickles, Secretary of State for Communities and Local Government, has introduced a report detailing how local government can save £7 billion a year in running costs, cut carbon and improve services through managing their property assets efficiently, sustainably and in partnership with other service providers.

The report, sponsored by Interserve and produced as part of an inquiry by the Westminster Sustainable Business Forum, chaired by Matthew Hancock MP, is entitled, 'Leaner and Greener: Delivering Effective Estate Management'. It has cross-party support and backing from the public and private sectors.

Mr Pickles said: "This timely report shows that every council could save millions by managing their properties better, using the money to protect frontline services or keep council tax down."


The purpose of the inquiry was to investigate how the public sector could improve the sustainability of its estate management. The inquiry's recommendations suggest that if local authorities streamline office space use, sharing it with other service providers and local authorities, they can reduce their space requirements by up to 30 per cent and save £7 billion a year in running costs. Moreover, for the space that remains in use, local government can save a further £190 per sq m per year by following a suite of sustainability measures.

Matthew Hancock MP, Chair of the inquiry, said: "Local Government owns huge amounts of our towns and cities. On investigation, we often found poor use of that property, costing money and adding to carbon emissions. What we found surprising, is that where improvements have been made, the people working there told us that they had not just saved cost and saved carbon, but also improved services as a result. This report looks at case studies where bold changes have been made, and assesses how much can be saved from improving use of the buildings that surround us."

(CD/GK)