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 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 level timeline Baseline data and understand partner drivers
October
Baseline data and understand partner drivers
November
Partner workshops for opportunity identification and analysis of civic centre location options
December
Complete partner workshops and initial analysis of site options
High level timeline
January
Draft strategy developed with prioritised projects
February
Feedback from partners
March
Finalise strategy for Cabinet decision in April 2019

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
Embed the Corporate Landlord model, to drive the rationalisation and consolidation of the asset estate, and corporate asset decision making based on 3-5 year service property requirement strategies.
Principle 2
Consolidate operational assets to decrease the number of single-use assets, reduce revenue costs and create multi-functional property, supporting service improvement.
Principle 3 Rationalise the asset base by reviewing all non-operational and surplus assets to identify opportunities to create or increase revenue income, provide investment opportunities or deliver capital receipts, with an initial focus on high cost, poor performing assets. All other assets that have no strategic value are to be considered for disposal.
Principle 4
Develop a robust asset management plan to invest properly in all retained assets, to ensure they are fit for the future in supporting excellent service delivery.
Principle 5
To work collaboratively within and across the Council, District, Borough, Health and blue light authorities and other Voluntary, Community and Faith Sector organisations to identify wider opportunities to benefit the community within the context of asset strategy and planning.
Principle 6
Support economic growth across Surrey in partnership with District and Borough Councils to assist in local place shaping.

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