What's Happening?
Grant Thornton is providing advisory services to local authorities undergoing Local Government Reorganization (LGR) in England, with new unitary authorities expected to be established by April 2028. The reorganization involves significant restructuring
of governance, finance, and workforce, with asset management being a critical component. Grant Thornton emphasizes the importance of building a shared picture of the estate and making strategic decisions before vesting day. The firm highlights the need for a Strategic Asset Management Plan (SAMP) to identify essential and surplus assets, rationalize capital programs, and capture regeneration opportunities. Effective asset management requires clear governance, professional capacity, and collaboration with programs like One Public Estate.
Why It's Important?
The Local Government Reorganization represents the most extensive restructuring of English local government in a generation, impacting hundreds of operational assets across multiple councils. Effective asset management is crucial to avoid costly mistakes and ensure smooth transitions. Grant Thornton's advisory services aim to support local authorities in managing their assets efficiently, reducing risks, and maximizing opportunities for regeneration and housing. The reorganization offers a chance to implement robust asset management strategies, which can lead to long-term financial sustainability and improved governance for new unitary authorities.
What's Next?
Local authorities must prioritize asset management as they prepare for the transition to new unitary structures. Grant Thornton advises on creating a comprehensive asset register, agreeing on balance sheet splits, and developing a Strategic Asset Management Plan. Authorities should engage with programs like One Public Estate to optimize their asset portfolios and collaborate with stakeholders. The reorganization process will continue to evolve, and authorities must remain proactive in addressing challenges and leveraging opportunities for effective asset management.
