by Rebecca Walker — September 14, 2009—Research and Markets has released a report, “UK Public Sector Property to 2013,” which notes that running the public sector property will cost the taxpayer some 20bn in 2009.
According to the report, this represents 8 percent of the public sector spend, second only to staff. It is clear that under current government policies, construction will play a significant role as an economic stimulus, and will be used to mitigate the impact of the downturn on employment and spending, says the publisher.
The initial research on this market shows that over the next two years:
- Existing programs directed at improving the education and health estate are well defined, and will be sustained, if not accelerated;
- The schedule for the 2012 Olympics, which accounts for 20 percent of annual spend, cannot be changed; and
- The government is already stepping in with additional public funds where there is a shortage of private finance to sustain these initiatives.
However, the analyst is also predicting that the public sector property spend will decline by 25 percent in 2012.
The report includes a description of the current landscape for public sector construction and property management, and estimated current levels of spend in different market segments; as well as forecasts of the main trends and developments over the next five years, and the implications for suppliers in the market.
