The body which oversees UK public spending has criticised the way the BBC is running its estate following the publication of a National Audit Office (NAO) report. While the report praises certain aspects of the way the estate is managed, especially its strategy of rationalising space, the Public Accounts Committee (PAC) is heavily critical of the BBC’s failure to meet its target of costs capped at 6 percent of licence fee income and the way the costs of some buildings are unacceptably high, including at the revamped Broadcasting House in London (above). According to the PAC, the running cost of the building is significantly more than others in the same area and around three times higher than a UK average. The BBC defended itself, highlighting progress in many parts of its estate and claiming that such comparisons did not stand up to scrutiny.

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The troubled organisation which looks after a £3 billion chunk of the NHS estate is set to launch an extensive review of its enormous portfolio of offices, hospitals, health centres and GP practices. According to a report on commercial property website CoStar, the move comes as NHS Property Services gets to grips with structural problems in the way the estate is managed, not least the fact that over two thirds of its properties do not have documented leases in place, many facilities management services are provided without a contract in place and nobody seems aware of the true cost of running its estate of the thousands of individual sites involved. The health estate has come under mounting scrutiny over the past two years following the setting up of NHS Property Services in April 2013 as part of the Government’s plans to modernise and rationalise the public sector property portfolio.

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A new report from the Royal Institution of Chartered Surveyors (RICS) claims that over a quarter of UK organisations are failing to adopt a strategic approach to facilities management. For those firms without this approach, the annual average cost is calculated by the report’s authors as £120,000, suggesting a total cost to the economy of nearly £1 billion. The claim is based on a study of around 700 organisations in both the public and private sector and across a range of organisational types and sizes.  Around half of those with a ‘dedicated FM programme’ said that doing so had saved their organisation money, 59 per cent reported an increase in productivity, a fifth (21 percent)reported a drop in absenteeism and nearly half (49 percent) claimed it had made them more attractive to customers. The best results were recorded in the public sector with 70 per cent saying strategic facilities management had increased productivity and 71 percent claiming they had seen an increase in employee engagement.

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