Borders council has 480 'non-operational' buildings on its books

by OUR LOCAL GOVERNMENT STAFF 

Councillors in the Scottish Borders will be told in no uncertain terms next week that the vast portfolio of 'assets' currently in local authority ownership is much too large, and the estate is now financially and environmentally unsustainable with a £22 million maintenance backlog.

The need to radically rationalise a total of 1,658 items on the asset register, including 484 'non-operational' buildings is outlined in a report written by Ray Cherry who became Scottish Borders Council's new Chief Officer, Estates, last June.

His appointment followed a review in 2022 which came to the conclusion that much of the estate - measuring the equivalent of 55 football pitches - is near end of life, in poor condition or is uneconomic to fix.

That review also claimed: "The estate is oversized; digital tools can improve ways of working; spaces do not reflect what services need to deliver effectively; there is little meaningful progress in partnership working and joined up public services; there is a desire for more creative use of council assets by the community.".

Next week's meeting will be asked to sanction a proposed rationalisation target for the next 5 years. Mr Cherry sets out the benefits that "will be realised as well as the need for all Council services to play their part in supporting the objective, contributing to right sizing the estate, both of which will contribute to targeting how we invest, where we maintain to improve the efficacy of our estate, decarbonising and reducing costs. 

"The target 10% (39,000m2) reduction of the estate over a five year period proposed in the report recognising the role that all Scottish Borders Council services have a collective role in working together to realise this objective."

Mr Cherry believes the "siloed nature" of how the council staff work creates difficulties in managing  assets effectively. There are historical and cultural legacies that have meant that SBC has not always arrived at optimum estates solutions, nor ensured that they are implemented to best effect. Much of the Council estate is seen as a liability rather than an asset.

The report explains that plans to reimagine council headquarters in Newtown St. Boswells as a civic hub, to optimise use of the building, increase occupancy and utilisation is progressing. Physical works are underway on-site to support the proposal. 

NHS Borders have already occupied a portion of the building. Live Borders [Sport & Leisure Trust] have followed, and discussions continue with other public and third sector partners with a view to working more closely, and collaboratively, pooling resources whilst helping share or reduce operational costs and maximise the return on investment that SBC has committed. 

According to Mr Cherry, the rationalisation strategy could produce benefits which might include: "Services are better protected (with a reduction in the estate being prioritised over reducing services);  reduce operational costs; increase capital and revenue income to support the Council’s financial sustainability; more concentrated and targeted investment in improving condition and functional suitability of key assets; fit for purpose estate aligned to meet service needs; more concentrated and targeted actions to reduce energy costs and consumption, and reduce direct carbon emissions."

The report suggests that each estate asset will be evaluated considering objective data and informed criteria to be classified in one of the following three categories: Retain and Maintain; Retain and Invest; Divest or Dispose. 

"A number of Council buildings play a significant role within communities across the Scottish Borders, particularly those that community groups use regularly or those that have a significant civic presence. For assets that fall into this category and are classified ‘Divest or Dispose’, engagement will need to be undertaken with the relevant community. 

"It is proposed that engagement will take place with relevant communities through community councils, Town Teams and other relevant community organisations explaining how a determination has been reached. Following this three-month grace period, from the date of engagement, an expression of interest should be submitted by the relevant community or third-party body."

While the strategy is expected to cut costs and generate income, Mr Cherry also mentions the need for additional resources to deliver the rationalisation programme.

The report concludes: "This is an ambitious programme, essential to the Council’s long term financial and environmental sustainability. There will be resource implications to achieve this, primarily in the Estates Team. 

"Initial data gathering and assessments of SBC assets is time consuming, requiring technical and professional skills. Much of this is available within the teams, but additional resource is expected to be needed to deliver the programme. Some resource can be sought from the private sector; however, it is anticipated that an expansion of in-house staffing may also be required alongside a reprioritisation of workload."