Review of Highland Council property approved to reduce carbon emissions and deliver savings

11th December 2021

Members approved a list of offices for review and potential rationalisation as a key part of the 15 year capital strategy plan.

Consultation will be undertaken on the properties identified as part of the review process.

The strategy seeks to deliver improvements in our estate by reducing the number of property assets, and therefore associated maintenance costs, reduce carbon emissions, release revenue savings of some £0.231m and achieve market value for some buildings estimated around £1.7m.

It is also intended to improve community access to essential services and identify opportunities for shared services with partners, increasing collaboration and also efficiency, by maximising the use of existing buildings.

There are a number of key drivers for change, including the need for flexible work space, to improve access to services, changing service delivery models, an ageing estate and importantly, the need to reduce our carbon footprint.

The initial focus for the asset rationalisation work, is on office accommodation, to create increased capacity in nine hub offices which will enable new ways of working, incorporating a hybrid model of home and office working for office based staff.

16 offices have been proposed for review, along with indicative timescales. The review will take into account options for future repurposing or disposal in line with corporate aims, staff wellbeing, service delivery improvement, community benefit, carbon neutral strategy, and financial best value.

The council has 60 general fund offices and in addition to those 16 offices identified for review, 16 are to be retained. 15 have no data and 13 are misclassified (either disposed of or not currently being used as office accommodation.

Approximately 21 properties have been classified as vacant or mothballed and a piece of work has been started to further investigate these properties to confirm their status and seek to expedite disposals wherever possible and appropriate.

Targeted condition surveys will provide an external view of the overall state of the current property portfolio. Initially, surveys will prioritise Depots and Stores, key sites which will require targeted investment. Once complete, all remaining sites which include a building will be surveyed within the next 18 months. The condition surveys will be vital towards making long terms decisions over properties, including whether they are rationalised or repurposed and where appropriate further investment can be targeted in a sustainable way, therefore informing the Council's capital strategy.

Given that a significant percentage of the Council's built estate continues to be heated through the combustion of oil and gas, which accounted for 28% of our total corporate carbon footprint in 2019/20 at a cost of £2m, the asset rationalisation programme is fundamental to the realisation of our corporate net zero requirements.

Depute Leader Alasdair Christie said: "We need to be honest about the questions we need to ask about every building - does it achieve best value, is it fit for purpose, does it improve service delivery, does it reduce our environmental impact? It is an opportunity rather than a threat to look at all our assets in this way. We need to prioritise where funding will provide best value and maximise local economic opportunities.

"This review is an important part of our medium term financial plan and represents an ambitious and pro-active approach to addressing challenges, capitalising on the opportunities and investing in the long term future of the Highlands."

Leader of the Council Margaret Davidson added: “Rationalisation of our huge estate, getting rid of crumbling buildings and reducing the energy bills and repurposing some of the buildings we keep is essential to tackling climate change.

“At the last full Council meeting, we agreed that we must reduce, re-use, recycle and re-purpose before considering the creation of new assets. Only where none of these options are deliverable or appropriate, should the focus be on building new, and even then these new assets must be as carbon neutral as possible. It must be recognised that this comes at a cost that has to be met up front, whilst the benefits can take many years to accrue."

The full report can be found at Item 13 on the Council's website. See https://www.highland.gov.uk/meetings/meeting/4537/highland_council