Nine years after its last examination of asset management, the Audit Commission finds that few councils are managing strategically their £250 billion of assets. In Room for improvement: a review of strategic asset management in local government, the Commission reveals that:
- councils have spent £1.2 billion more on buying or refurbishing their offices than they have raked in from sales
- only one in 14 (7 per cent) of councils is an exemplary manager of its assets
- in 2007/08, while 65 improved, the performance of 46 councils on asset management deteriorated (based on their UOR scores)
- a third do not yet share assets with other public services
The Audit Commission warns that, in the current economic climate, councils will need to do far better, if councils are to achieve expected savings and maintain services in the coming years.
The report also calls on central government to give a clear steer on the priority for local government: should councils seek to dispose of assets to maximise receipts, or enhance estates to deliver better public services.
Audit Commission Deputy Chairman Bharat Shah said:
“The recession is a good time for councils to plan how to use the property they own more efficiently and possibly even to acquire assets for the future.
“While some councils have reaped the benefits of good asset management, many lack the capacity or even the basic information to support strategic planning.
“This leaves them badly placed to deal with tougher times ahead and the new, stricter strategic asset management standards set in Comprehensive Area Assessment.”
A suite of products to accompany this report are available. These can be found in the 'Related documents' section to the right of this page.