Agenda item

Cabinet :

1.    Approved the principle of rationalising the Council’s administrative accommodation, generating revenue savings to support the Council’s Medium Term Financial Strategy, delegating authority to the Director of Asset Management to take such actions necessary to negotiate the re-use of surplus assets.

2.    Approved the immediate programme of building works necessary to provide the new Appointment Centre on the lower ground floor of the Town Hall other measures to facilitate the rationalisation of buildings, including the commencement of related procurement processes.

3.    Recommended the allocation of additional capital funding in the sum of £1.5m within the Council’s capital programme to fund the immediate investment proposals within this report, subject to endorsement by Full Council.

4.    Noted that detailed proposals for the re-use of surplus assets will be the subject of individual business cases to be brought forward subsequently for each building.

The report was presented and summarised to Cabinet by Councillor Roger Ramsey detailing the rationalisation of the office accommodation used by the London Borough of Havering.  The model behind this has come about following the Covid 19 pandemic, which has seen the vast majority of office staff working from home and virtually utilising the Smart Working model.  Currently only 10% of office space is being used and so there is an opportunity here to rationalise the Borough’s assets and make substantial savings as a result.

Focus will be on the Town Hall itself as the main office area. Funding from capital of £1.5 million together with savings of 3 million from the modernisation of Mercury House will be saved.  The report sets out how this will be done and what the Human Resources needs of the Council will be once the new normal is established.  There will be staff attending the Town Hall but this will be greatly reduced and estimated at 35%.

Remodelling of the Town Hall in the near future will minimise the disruption staff whilst the majority continue to work successfully from home. 

Mark Butler, the Director of Asset Management indicated that, the extensive transition to remote working and more flexible delivery of Council services prompts the opportunity to re-assess the Council’s future needs for operational accommodation and scope to achieve consolidation of assets, delivering broader benefits in the form of:

·        Reducing accommodation costs to alleviate revenue pressures and contribute to the Council’s Medium Term Financial Strategy.

·        Aligning the Council’s asset base to support the future operating model and related proposals e.g. Digital Council, Customer Access.

·        Less duplication of facilities across buildings e.g.IT, photocopiers – cost reduction.

·        Reduced silo based working between services previously spread across multiple buildings – fostering a culture of collaborative working.

·        Focussing future investment into fewer assets.

·        Reduced carbon footprint resulting from a consolidated office estate.

·        Reduction in travel time/cost between sites

·        Re-use of surplus assets to support regeneration/housing initiatives or potential capital receipts.

·        Potential opportunities to encourage further co-location by partner organisations to embrace the One Public Estate principles.

·        Recruitment and retention benefits as a result of the Council offering greater flexibility and improved facilities for employees.

Consultation has taken place across directorates to gain insight into the Council’s reduced accommodation requirements based upon the principle of a Smart Working organisation, recognising nonetheless the particular needs of specific services. The Council is increasingly delivering integrated services in conjunction with partner agencies who are, in many cases, conducting similar accommodation reviews across their own organisations.

There followed discussion and it was noted from Andrew Blake-Herbert that staff would be looked at on a case-by-case basis to ensure their mental health, and wellbeing is considered. The opportunity for team working and socialisation will be catered for.  Some staff are identified as struggling with loneliness and some younger members of staff have little space in home accommodation. These issues will all be considered through regular engagement with the unions.  There are links into other matters on the agenda for Smart Working and office digitalisation ensuring all staff have the best possible connectivity and work models.  There are no concerns at this stage of not being able to recruit staff into integral roles and it may even improve this aspect giving access to a broader recruitment pool.

Cabinet :

1.    Approved the principle of rationalising the Council’s administrative accommodation, generating revenue savings to support the Council’s Medium Term Financial Strategy, delegating authority to the Director of Asset Management to take such actions necessary to negotiate the re-use of surplus assets.

2.    Approved the immediate programme of building works necessary to provide the new Appointment Centre on the lower ground floor of the Town Hall other measures to facilitate the rationalisation of buildings, including the commencement of related procurement processes.

3.    Recommended the allocation of additional capital funding in the sum of £1.5m within the Council’s capital programme to fund the immediate investment proposals within this report, subject to endorsement by Full Council.

4.    Noted that detailed proposals for the re-use of surplus assets will be the subject of individual business cases to be brought forward subsequently for each building.