Navigating Commercial Asset Management in Local Government Reorganisation
- truthaboutlocalgov
- May 31
- 5 min read
As local government reorganisation (LGR) continues to reshape the landscape of public service delivery across the UK, one area that demands urgent and strategic attention is commercial asset management. With councils merging into larger units, the way property portfolios are assessed, managed, and integrated will play a pivotal role in determining the success of these new authorities.
In a recent episode of The Truth About Local Government, Alex Gee, Senior Consultant at CIPFA and widely regarded as “The Wizard of Property”, shared his insights on how officers and members responsible for property can prepare for the challenges and opportunities ahead. This blog distils the key takeaways from that conversation, offering a practical guide for those navigating the complexities of asset management during LGR.
Reorganisation Brings Both Risk and Opportunity
As councils consolidate, their combined property portfolios can either become powerful enablers of service delivery or burdensome liabilities. The difference lies in how proactively and strategically these assets are managed.
“Your property portfolio is either going to be an asset or it's going to be a liability,” said Alex Gee. “There are key steps that you need to be taking to take control of that.”
Early action is essential. Without it, new authorities risk inheriting a backlog of unresolved issues, fragmented data, and inefficient systems.
It’s Not Just About Commercial Value
While some assets may appear unviable from a purely financial perspective, they often hold significant social and community value. This dual lens is critical.
“You have to weigh into account the social value, community value of the assets that we're holding,” Gee explained. “Even though they may be ageing and crumbling, they play a vital role within communities.”
This means decisions about retention, repurposing, or disposal must consider more than just the bottom line.
Strategic Conversations Must Start Now
With LGR submissions already in, now is the time for property teams to engage across borders. Open, honest collaboration with neighbouring authorities is essential to assess the combined estate and begin aligning strategies.
“Talk to your property teams and your neighbouring authorities,” Gee advised. “Start having those honest conversations about what is it that we've got, what is it that we hold, and strategically start to think about the state of the estate.”
Understand the “State of the Estate”
This phrase captures the need to audit and understand the current condition of all assets. It includes:
Identifying compliance and safety risks (e.g. Building Safety Act)
Recognising backlogs in condition surveys
Addressing data gaps
“Understanding the state of the estate in building condition terms… understanding what the unknown unknowns might be that pose a risk to us.”
Systems and Data Are Foundational
Before discussing assets, councils must understand their systems and data structures. Many authorities still lack proper asset management software, which is essential for smooth integration post-merger.
“Let’s understand what we’ve got. Let’s start to get it in shape so we can lift and shift when it comes to how we assimilate the data.”
Prepare for Integration and Rationalisation
Strategic rationalisation is key. Not every council will need its own town hall or theatre. Begin identifying key assets and planning for potential disposals or repurposing.
“We don’t all need a town hall. It might mean we need to start doing that strategic thinking around our asset portfolio.”
Leverage Existing Networks
Professional networks such as CIPFA, RICS, and RIBA already foster collaboration across authorities. These relationships can be instrumental in aligning strategies and sharing best practices.
“We have those partnership networks in place. Let’s start those discussions in terms of actively engaging.”
Strategic Asset Management During LGR
1. Understand the State of Each Asset
Use an asset challenge process to assess whether each asset is:
Essential for community/social value
Suitable for repurposing (e.g. housing, children’s services)
Viable for commercial use
A candidate for disposal
2. Use This Window of Opportunity
Now is the time to act—before new authorities are formed. This avoids burdening them with legacy issues and enables a smoother transition.
“If we don’t take this time to do this work now, what we’re going to do is saddle any new authority with a backlog.”
3. Avoid Repeating Past Mistakes
Previous reorganisations have shown that failing to align systems and data early leads to years of inefficiency. Councils must learn from these lessons.
4. Plan for the Future, Not the Past
Ask difficult but necessary questions about long-term viability. For example, do all districts need their own theatre? Can some be shared or repurposed?
5. Engage External Support Strategically
If internal capacity is limited, external partners like CIPFA can help. To ensure success:
Be clear on the outputs you want
Ensure the process is collaborative and service-led
Involve heads of service to understand frontline delivery needs
6. Focus on Utilisation and Fit-for-Purpose
Assets should be:
Well-utilised
Fit for purpose
Cost-effective to run
Underused or inefficient buildings should be reviewed for alternative uses or disposal.
Building Strategic Capacity and Fair Evaluation
1. Empower Internal Teams—Don’t Overlook In-House Talent
Many councils already have skilled property professionals. The challenge is freeing them from operational tasks so they can focus on strategic planning.
“Can we free them up from the weeds to be able to look strategically down the line?”
2. Prioritise Relationships and Shared Vision
Early alignment across merging authorities is essential. This includes:
Shared data standards
Common systems
Unified strategic goals
3. Conduct a Capacity Assessment
Authorities must honestly assess their ability to:
Challenge data quality
Evaluate assets strategically
Collaborate across boundaries
This includes addressing siloed decision-making and personality-driven asset control.
4. Create a Fair and Consistent Evaluation Matrix
CIPFA’s Asset Challenge Process evaluates assets through 10 lenses, including:
Utilisation
Running costs
Civic sensitivity
Net zero potential
Strategic fit
This results in a RAG (Red-Amber-Green) rating to guide deeper business case development.
5. Use Business Case Methodologies
Apply models like the HM Treasury Five Case Model to weigh options and support governance decisions. This ensures transparent, evidence-based planning.
6. Respect and Leverage District-Level Expertise
Some district councils have exceptional data and strategies. Counties must show humility and openness to learning from them.
“Collaboration should be based on merit and capability, not hierarchy.”
Culture, Capacity, and the Future of Property Management
1. Power Dynamics Can Undermine Collaboration
“Big Brother, Little Brother” dynamics between counties and districts can erode trust and teamwork. Successful reorganisation depends on mutual respect and equal footing.
2. Corporate Landlord Model: A Light Touch for Now
The “corporate landlord” concept—centralising property budgets and decision-making—will likely return post-LGR. For now, focus on:
Aligning processes
Standardising ways of working
Preparing for future integration
“Right now I’m talking to local authorities about what I would consider to be corporate landlord light.”
3. Do the Work Now to Avoid Future Chaos
Councils must act now to:
Assess and challenge their asset base
Build internal or external capacity
Develop a strategic asset plan
This ensures new authorities are set up for success from day one.
4. Final Call to Action
“Your assets should be working for you.”
Take the time now to ensure they are fit for purpose, strategically aligned, and ready for the future. By following these insights and strategies, officers and members responsible for property can ensure that their assets are not only well-managed but also contribute meaningfully to the long-term success and sustainability of the new councils.
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