By Nick Mann | 13 January 2012
Better management of government property and tighter controls on new leases and acquisitions have saved more than £100m so far this financial year, according to Cabinet Office figures published yesterday.
This compares with £90m saved over the whole of 2010/11.
Costs have been reduced partly because of national property controls – Cabinet Office approval is now needed for all new leases and acquisitions of property by government departments.
Surplus buildings are also being examined for subletting or sale potential. The department data shows there are currently 552 empty government properties.
According to the government, space is also being used more effectively. It cited the first major example of co-location in Whitehall earlier this year when Cabinet Office staff moved into the Treasury building.
The savings figures were accompanied by data showing that the cost of property per employee in the public sector in 2009/10 was £4,454, compared with £4,525 in the private sector.
The Cabinet Office said it was ‘determined’ to cut this cost further and was focusing on the most expensive area – central London – first. Almost one-fifth of government estate is in the capital.
Public sector employees also have 16% more space per person than private sector staff, the data showed. However, wide fluctuations in this figure across the estate suggested many buildings could be run more efficiently, the Cabinet Office said.
Yesterday’s data also showed the government’s estate totals 16,411,676 square metres spread across 13,911 different property holdings. Cabinet Office minister Francis Maude said identifying the scale of what government owns and leases would make it easier to identify and make savings.
‘We expect even greater savings by the end of this Parliament, as we make better use of space and put an end to the days where the government estate was bigger, inefficient and went without scrutiny,’ he said.
‘Governments will always need property, but it can only be right that the public can see what property is held and how efficiently it is being used.’
