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Michael Adam describes how his council is reviewing its asset portfolio to help reduce deb. Hammersmith and Fulham LBC is now embarked on a bold course to cut its general fund debt by at least 50% up to 2014 and, ultimately, to eliminate it. Asset sales have been identified as a key means to achieve this target. And in the process of re-evaluating its estate, the council is likely to rethink its mode of delivering many fundamental services. When the current administration took office in 2006, council debt, excluding housing-related debt, stood at £170m. To put that into context, the council's debt had reached a total approximate to its entire annual expenditure. More than £8m, which could otherwise have funded services, was being spent every year servicing interest payments. Since 2006, and notwithstanding the recession, the situation has improved significantly, such that at least £35m of debt – equivalent to around 20% of the total inherited – has already been repaid. This has been achieved during a period when, uniquely, council tax has also been reduced for four consecutive years. In common with the rest of the public sector, Hammersmith and Fulham LBC faces an unprecedented spending squeeze. In this climate, continuing to reduce debt must be one of our top priorities so that we can further reduce our interest costs and prioritise spending on frontline services. Asset management has a critical role in achieving savings. First, we are undertaking a no-holds-barred review of our property estate, not only to identify land and buildings which are potentially surplus to requirements but to challenge, at a more fundamental level, whether the council needs to remain an owner of assets in order to meet its statutory provisions as a provider of local services. To underline its importance, the asset review process is being undertaken under the supervision of the two most senior members of the cabinet. Such a review must be conducted with sensitivity and transparency to ensure adequate alternative provision is secured for service providers, and to minimise disruption to end-users. We will have to make difficult choices and dispose of popular and iconic buildings with a long municipal history. However, our priority should always be to prioritise people and services over bricks and mortar. As part of a broader functional review of services, we will examine opportunities to make additional savings and free up accommodation through increased joint working, not only breaking down internal barriers between council departments but also seeking greater co-operation with neighbouring local authorities, and improving our interface with organisations such as the NHS and the police. The sales process itself will involve traditional auctions and competitive bids, but we also look forward to developing innovative partnership structures, possibly involving local asset-backed vehicles, if these provide us with better long-term value than a quick sale. In terms of the estate which we retain, we will continue to seek savings from smart procurement, improve efficiency in the repair and maintenance of our buildings, and focus particularly on energy efficiency, especially given the commitment to reduce the council's carbon footprint by 40% by 2015. Every council faces different circumstances but all have in common a responsibility to protect essential public services in the face of unprecedented budgetary pressure. Hammersmith and Fulham is proud to be leading the way in showing how this can be done. Cllr Michael Adam is assistant cabinet member for asset management at Hammersmith and Fulham LBC

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WHITEHALL

Taking a look at our best assets

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