It’s been clear, over the past few years, that the UK’s public sector has faced significant financial struggles – grappling with issues ranging from deteriorating infrastructure to the immense operational and financial pressures on the NHS. Chancellor Rachel Reeves revealed a £22 billion “black hole” in public finances this year, and this doesn’t necessarily come as a huge surprise.
This challenge is so stark, that the Local Government Association has found that nearly one in five local councils are likely to be facing bankruptcy by March 2025 – with the County Councils Network forecasting a £54 billion funding shortfall facing England’s local councils over the next five years.
The day-to-day running of these buildings is economically demanding, especially in a climate of decreasing funding and inflation of energy costs, which alone are adding over £95 million to the total council spending bills in 2023/24.
Technology, however, can offer hope. New modelling from Vodafone UK and WPI Strategy shows how 5G-powered digital technologies could reduce energy bills and improve energy efficiency, when applied to public buildings like hospitals, schools, and leisure centers.
The research found that technologies like digital twins – virtual models of buildings – enable engineers to remotely monitor and optimize building performance, quickly identifying maintenance needs and opportunities for cost and energy efficiencies. The Internet of Things (IoT) enables communication between devices, whilst smart sensors installed across public buildings can enhance data collection and analysis.
Collectively, these technologies have the potential to reduce carbon emissions by 1.43 million tons of CO2e annually when installed across the public estate. To put this into context, that’s the equivalent annual electricity usage of almost 300,000 homes – more than every house in a city as large as Leeds.
Implementing these technologies could reduce UK energy bills massively, saving £580 million of public money annually.
These technologies already exist, but they will have much greater potential on a 5G Standalone (SA) network. As opposed to the current 5G network, which only uses upgraded technology in its masts and also partly relies on 4G technology, 5G SA is a fully upgraded network in all its components – from radio, to access, transport and core – that solely uses 5G technology.
Strategy and Wholesale Director at Vodafone UK.
Driving efficiencies in NHS hospitals
On average, 47,000 people visit hospitals every day – given their size, the volume of technology used and the high demand for their services, they are expensive to run. However, by deploying digital twin technology powered by 5G, they could save a total of £219.7 million every year.
Digital twin technology would enable engineers and hospital management to study the running and energy usage of hospital buildings remotely and in detail to identify where they can drive energy and cost efficiencies.
These digital twins can also help hospital management better understand patient capacity, with sensors on beds powered by IoT allowing staff to work out which beds are free and where, even as they move around the hospital.
Protecting our leisure centers
The cost of keeping leisure center pools heated has meant that more than 1,000 pools have closed since 2010 and a further 1,500 are at risk of shutting soon, which is a concerning trend. These sites not only offer health and wellbeing for many, they act as hubs that are so vital to local communities. Worryingly, people believe these centers are the second public building most at risk of closure due to struggling finances, according to recent polling by Vodafone.
However, seamlessly connected devices through a 5G SA network and IoT could save leisure centers up to £72.1 million per year – allowing managers to monitor temperature, lighting and water quality in real-time, through interconnected sensors and smart meters. This will allow optimal swimming conditions to be maintained whilst not wasting energy on heating and lighting.
Helping leisure centers to not only reduce their carbon footprint but also save much-needed funds means that other resources and facilities could be upgraded.
School’s out, lights out
The size of schools, matched with the fact that not all classrooms are always in use (with long periods of inactivity on weekends and during holidays) means that energy and water efficiency can be a challenge in schools.
With 5G-enabled sensors, they could save up to £94 million per year. These can offer 24/7 monitoring of heating, ventilation, lighting and plumbing systems, which helps facilities managers identify minor issues before they turn into major problems; and allows them to control heating and cooling systems according to class and holiday schedules.
The 5G SA network means that these sensors can process this data at a much faster rate – increasing the efficiency of maintenance operations and saving time, energy and money.
When will we see this in action?
It is clear the Government is acutely aware of the need to drive cost efficiencies wherever possible in the public estate – but not everyone realizes just how helpful technology can be in making this happen. In fact, 66% of people in our survey said they’re not aware of the impact technology can have on buildings seeking to reduce energy use, which inevitably leads to financial savings.
Our research shows that 5G-powered technologies across public buildings could deliver annual savings of £580 million and a carbon saving of 17% in the public estate – going a long way to contribute to our new Government’s goals.
This is why significant digital infrastructure investment is essential to ensure the successful rollout of 5G SA across the UK. Only then will we be able to provide the 5G SA connectivity that critical areas like schools and hospitals need to drive these efficiencies.
As such, we need to continue to think innovatively and collaborate with each other – only then will we be able to fill the “black hole” in our public finances, reinvest in new public sector, and generate economic benefits for the UK as whole.
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