Structured Solutions for Government
Pinsent Masons has created a new team to meet challenges for the public and private sectors in developing new partnership structures to deliver government initiatives arising out of the Lyons Review, the Transformational Government Strategy, the Gershon Efficiency Agenda, the CLG Strong and Prosperous Communities White Paper and the new housing agenda recently set out by the Prime Minister.
Our specialist advice service, Structured Solutions for Government (SSfG), led by PPP legal experts Alan Aisbett and Scot Morrison is aimed at both public and private sector clients. It takes advantage of Alan and Scot's years of experience in developing bespoke partnership structures to help the public sector deliver services more effectively and efficiently within the current Government's agenda.
A new breed of partnerships
We are starting to see an entirely new breed of local government/public sector partnership structures emerge with policy areas such, as Gershon and transformational government driving collaboration between public sector bodies in conjunction with the quest for efficiency savings, a concentration on "Place" and community strategies, the housing growth agenda and the creation of City – Regions. These structures are outside the "mainstream" areas such as PFI, LIFT, etc. but use some of the learning. Areas which are ripe for this new breed of partnership include urban regeneration, property asset management and collaboration and shared services.
Examples can be seen in numerous areas which include:
- The creation/ regeneration of property assets – a series of structures have emerged to allow the public sector to align its strategic approach to regeneration. Examples are the 21 urban regeneration companies and local delivery vehicles (being partnerships between local authorities, the appropriate RDA and EP). We are now seeing policy drivers moving us towards a new world of City Development Companies (CDC's) and Local Asset Based Vehicles (LABV's). The impending creation of Communities England will become an increasingly significant driver in this area
- Driving efficiency and value through existing assets – the public sector is examining how it can capture and create more value out of its existing property assets and more effectively leverage-in private sector funding. We have seen the RDAs address this by entering into PPPs with the private sector in relation to their property assets (both development and investment) and there is strong evidence that local authorities are now following this route
- Collaboration and shared services – public sector bodies are looking at a number of structures to allow them to share services more effectively through the creation of a single platform for the delivery of services. This has driven a requirement for public sector collaboration through various different types of vehicle
Although every situation is bespoke, approaching such structures in a focussed way at an early stage against common issues will allow a logical process to emerge and drive the correct structure. This will ensure that as the business case develops, the legal and financial structure fits neatly around that and allows for the intended partnership to work effectively.