Public Land, Public Good

Getting maximum value from public land and property

Author: Alex Thomson and Peter Wilkes, Localis   |   17/09/2014

Localis today publishes a report in partnership with Cathedral Group that highlights the potential for public land and assets to be used for developing new housing, reshaping public services, and boosting local economies.

The report found that councils are reacting to ongoing austerity by acting more like property developers, moving away from a mentality of simply selling buildings and land for one-off capital receipts, and instead looking to redevelop assets to derive revenue income from them that they can use to help support public services – with the proportion of redevelopments shifting from a third of all disposals to a majority of disposals over the next 5 years.

The report was launched today by the Minister for Housing and Planning, Brandon Lewis MP.

Receiving cross-party support from leading figures in local government and beyond, the report also recommends that:

• A local authority ‘hit squad’ of highly experienced officers should be introduced, tasked with maximising returns on council assets. The report suggests that if they could deliver a 5% increase on the œ13.5bn assets set to be developed over the next five years, this would produce almost œ700m of extra revenue.
• All arms of central and local government should be required to produce an annual register of assets which is made available to the public, increasing transparency as well as both supply and demand.
• Building on the Government’s One Public Estate programme, local authorities across the country should have a co-ordinating role for public service land in their locality, acting as custodians of their local communities.

QUOTES

Alex Thomson, Chief Executive of Localis said:
“As the report finds, it’s vital that we get maximum use out of public assets – not just now, but for the long term benefit of local communities. Our research concludes that local government is ideally placed to catalyse the development of public sector land and assets in their area.”

Richard Upton, Chief Executive of Cathedral Group, part of the Development Securities PLC Group, said:
“We welcome all of the key findings of this research, and in particular that forward-thinking councils are already realising greater value for their assets by hanging on to them and taking a forthright and entrepreneurial role in a partnership with the private sector to create something valuable for the communities they serve.

“We would urge more public land owners to adopt this more creative, prudent and longer term response to the pressures of the national deficit, by sweating instead of selling their assets. If adopted, the recommendations in ‘Public Land, Public Good’ will assist with this process.”

SUPPORT FOR ‘PUBLIC LAND, PUBLIC GOOD’ HAS COME FROM A RANGE OF CROSS-PARTY FIGURES ACROSS CENTRAL AND LOCAL GOVERNMENT:

“Local authorities hold land as custodians of the public interest. They are not there to do the job of developers but they do have a core responsibility to use their public land holdings and powers to encourage development and drive long-term growth. I welcome the recommendations in this report not least the need for a pan-public sector land strategy led by local councils.”
Lord Shipley, Liberal Democrat Peer and Government Cities Advisor

“Local government is facing some tough challenges ahead but, as this useful report uncovers, it is continuing to seek out new ways of meeting the challenges through innovation and making the most of its assets by channelling their inner commercial spirit. At the same time, it is vital that local public services come together to support our communities, as we are already doing in Cheshire West and Chester, and the report helpfully calls for more of the same.”
Councillor Mike Jones, Leader of Cheshire West and Chester Council and LGA Conservative Group Deputy Leader

“At a time of shrinking budgets, and pressure on the local economies this report is an important and timely contribution to the current debate. Having worked directly with Cathedral to deliver the award winning new Clapham Library at no cost to the public funds; I know first-hand that exemplar projects can and should be delivered to the benefit of all concerned.”
Councillor Lib Peck, Leader of Lambeth Council