Paul Statham 23 July 2014

Wasted public sector space

London seems to always be growing, with new buildings popping up every day. As the city’s demand for space increases, the government continues to approve building plans to meet these space requirements. This, of course, comes with a price tag; government bodies are spending millions on new building projects to meet the growing city’s demands.

This price tag is particularly alarming for a country that is still recovering from the 2008 recession, which left many boroughs of London in rough shape as they attempt to recuperate.

At the same time, vacancy rates in London’s public sector buildings are growing steadily. The City of London, for example, has experienced a 100% increase in vacancy rates from 1998 to 2005, sitting at 16% vacancy in public sector buildings. Other boroughs have been hit even harder, with Kensington and Chelsea experiencing 200% increase in vacancy rates. This means that as the government continues commissioning new buildings, there are actually an increasing number of prime real estate public sector buildings already built that are left empty.

The DCLG, who circulated these findings, has not been able to publish data on vacancies over the past 8 years due to government budget cuts. This, ironically, could easily have been avoided if the government were to make proper use of the vacant space in London.

With this lack of data, the knowledge of vacant buildings in London has been kept out of the public eye, which means there is significantly less pressure on the government to act. However, the NHS recently revealed that between £50-60m pounds is spent on maintaining empty buildings. Clearly, this is an issue that needs to be addressed.

These empty spaces are not only a blatant waist of space, money, and resources, but also a clear detriment to the country in the post-recession economy. Budget cuts have become a common occurrence in the UK, particularly affecting health and education sectors that cannot afford to lose any more funding. Not only is money being wasted on the upkeep of empty, useless space, but the lack of data reporting it is justifying money spent on new spaces.

Meanwhile, important public sector services are missing out. If cutbacks are indeed necessary for the UK to recuperate after the recession, why not cut back on empty properties?

There are a number of possible solutions to this, but first and foremost, the government should be encouraging companies to use the empty spaces. They could, for example, offer tax breaks for companies who can consolidate their real estate and free up space for other businesses. The space is already there, and encouraging businesses to occupy it is in the best interest of everyone involved.

At Condeco, we have issued a call to government regarding this increasing number of vacant public sector buildings within London, which has now gained the support of local Labour MP Andrew Slaughter.

Both Condeco and Mr. Slaughter have contacted Rt Hon Eric Pickles MP, who is the leader of DCLG, expressing our concern over construction of new buildings whilst existing real estate is being wasted. Neither Mr Slaughter nor us have received a response.

London is always going to be a crowded city, but it does not need to be unnecessarily so. Filling empty spaces is the only way to capitalise on London’s limited space and make sure nothing is going to waste in our fragile economy.

It is no longer acceptable for government officials like Rt Hon Eric Pickles to ignore issues that have a very real effect on the people of London. Money is being handled irresponsibly, andthe issue will only continue to get worse.

Paul Statham is the managing director and founder of Condeco

Half a century in the chamber image

Half a century in the chamber

Cllr Dr James Walsh was elected to Arun District Council in 1975. Here he tells LocalGov what he's learned about trust, transformation and keeping it local.
SIGN UP
For your free daily news bulletin
Highways jobs

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Service Director - Environment

City Of Doncaster Council
£108,164 per annum
We are looking for an energetic and resilient leader to become our next Service Director of Environment here at City of Doncaster. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

Environmental Health Officer – Food, Health & Safety & Animal Licensing

Ashfield District Council
£39,152 – £41,771 per annum plus £2,000 Market Supplement (Pay award pending)
We are looking for an enthusiastic individual to carry out the full range of day-to-day functions and duties of an Environmental Health Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Assertive Outreach Officer

Ashfield District Council
£28,598 - £31,022 per annum (pay award pending)
This is an exciting opportunity to join the Housing Options Team as an Assertive Outreach Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Graduate EHO– Commercial and Environmental Protection

Ashfield District Council
£28,598 - £31,022
We are looking for an enthusiastic individual to carry out the full range of day-to-day functions and duties Environmental Health Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council
Linkedin Banner