New analysis shows efficient asset management set to generate £30 billion of public funds

• As Blair’s decade as PM comes to an end, analysis conducted by Real Asset Management (RAM) reveals the value of public sector assets has almost tripled since he came to power in 1997.
• Through streamlined asset management, the government has pledged to release £30 billion to ensure the taxpayer sees maximum value for money.

Analysis of recent announcements by the Government’s National Audit Office and published today by Real Asset Management (RAM) shows the total value of state assets now stands at £338 billion; an almost threefold increase since the £125+ billion estimated by the Lord Chancellor and the Treasury, prior to the publication of the first NAR in 1997.

Karen Conneely, Group Manager says, “The Government is committed to strategic asset disposal totalling £30 billion by 2010-11. However, it is only through the careful management and reporting of these assets that this is going to be possible,” RAM’s public sector customers, including those connected to The Department of Trade and Industry, the Home Office, the Cabinet Office and the Health sector are using RAM’s asset management software to manage just under 29% of the entire value of the NAR.

Continues Conneely, “The NAR is a real insight into the emphasis government is now placing on the management of its assets. It’s going to be very interesting to see how their plans impact the next publication of the National Asset Register.”

Ever since the start of the Blair leadership, plans for better management of state assets have been in motion. In his 2004 report to the Chancellor of the Exchequer Towards Better Management of Public Sector Assets, Sir Michael Lyons wrote: “Since 1997, the aim of the Government has been to increase the rate of investment in public infrastructure…. Asset management is a part of this story: selling surplus assets to free resources for new investment…. identifying and capitalising on hidden assets; and increasing value for money from retained assets.”

She recognised the similarities between managing substantial corporate and Government assets in his report when he concluded: “These objectives can be met in a way that is consistent with good business planning.”

Conneely agrees that any large organisation will only be running at maximum efficiency if assets are managed thoroughly, with orchestrated disposal playing a vital role. The government is no exception, as Conneely comments, “Most government bodies are required to keep all fixed assets under constant review, identify assets surplus to requirements, sell them as quickly as possible and obtain the best possible price.”

The Government’s asset disposal strategy is well underway and has already realised £12.2 billion since 2004/5. The aim of this primarily is to ensure the taxpayer receives maximum value for money from public sector assets. 

In his statement introducing the 2007 NAR Stephen Timms, Chief Secretary to The Treasury, pledged that: “After a decade of substantial public investment, the Comprehensive Spending Review (CSR) will improve asset management practice within the public sector. This improvement will enhance the efficiency and effectiveness of the UK public sector … will encourage departments to make the best possible use of their existing asset base by exploiting under utilised assets and disposing of assets no longer required for service delivery."

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