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The Independent
14-05-2025
- Business
- The Independent
Thousands of civil servants to be moved out of London as Government cuts costs
Thousands of civil servants are set to be relocated outside of London as the government looks to reduce costs and "radically reform the state". The move will see 12,000 civil service jobs shifted from the capital to new regional hubs, with 11 London office buildings slated for closure, including one of the government's largest Westminster sites. The projected savings are estimated at £94 million annually by 2032. Chancellor of the Duchy of Lancaster, Pat McFadden, stated the government is committed to decentralising decision-making, moving it "closer to communities all across the UK." Government departments are now tasked with submitting relocation plans for their staff, including senior officials, as part of the upcoming spending review. The deadline for these submissions is 11 June. This initiative will lead to the establishment of two major new 'campuses': one in Manchester focusing on digital innovation and artificial intelligence, and another in Aberdeen specialising in energy. Both cities already have a significant government presence. Manchester houses substantial offices for the science and culture departments, while Aberdeen is the location of the newly established Great British Energy headquarters. Other roles will be created in Birmingham, Leeds, Cardiff, Glasgow, Darlington, Newcastle and Tyneside, Sheffield, Bristol, Edinburgh, Belfast and York, with the changes expected to bring £729 million to the local economy by 2030. Among the offices being closed in London is 102 Petty France, one of the largest Government offices in the capital and home to around 7,000 civil servants in the Ministry of Justice, HM Courts and Tribunal Service, Crown Prosecution Service and the Government Legal Department. The Government will also close 39 Victoria Street, which has been home to the Department of Health and Social Care since the end of 2017. Mr McFadden said: 'By relocating thousands of Civil Service roles, we will not only save taxpayers money, we will make this Government one that better reflects the country it serves. 'We will also be making sure that Government jobs support economic growth throughout the country. 'As we radically reform the state, we are going to make it much easier for talented people everywhere to join the Civil Service and help us rebuild Britain.' Around 80% of civil servants – more than 400,000 people – already work outside London, but the most senior mandarins tend to be based in the capital. Under Wednesday's proposals, half of senior civil service roles would be based outside London by 2030. Prospect union general secretary Mike Clancy welcomed the plans to 'increase and empower' civil servants based outside London, but called for more clarity on the role of arm's-length bodies outside the capital. He added: 'We have been here before with similar announcements, if this one is to be different, Government needs to work closely with unions both on specific relocation plans and on the wider Civil Service reform agenda.' The Government has previously pledged to cut the total number of civil servants in an effort to make the British state 'leaner' and 'more productive'. Dave Penman, general secretary of the FDA union, also welcomed the proposals to move more staff out of London and allow them to 'build careers for the longer term across the UK'. But he added: 'There will also be uncertainty for the thousands of civil servants affected by the office closures announced today. 'We need to hear quickly from the departments affected how this will be managed, not least how they will be affected by the office closures, relocation of roles out of London and reduction in headcount all happening at the same time.' The Tories said the announcement showed the Government was 'fundamentally unserious' about reducing the size of the state and working more efficiently. Shadow chancellor of the Duchy of Lancaster Alex Burghart MP said: 'Labour themselves admit that they have set up at least 29 new quangos since entering office whilst Angela Rayner and her ministers also appear to have never used their offices outside of London – and are instead shutting them down. 'It's clear Keir Starmer is taking the public for fools – shuffling things around and making empty promises. Only the Conservatives are serious about reducing the size of the state and making it work more efficiently for British taxpayers.'
Sky News
13-05-2025
- Business
- Sky News
Civil service relocation and AI officials at heart of government cost cutting measures
AI civil servants and sending human workers out of London are at the heart of the government's plans to cut costs and reduce the size of the state bureaucracy. Shrinking the civil service has been a target of both the current Labour and recent Conservative governments - especially following the growth in the organisation during the pandemic. From a low in 2016 of 384,000 full time workers, in 2024 there were 513,000 civil servants. The Department for Science, Innovation and Technology is claiming a new swathe of tools to help sift information submitted to public consultations could save "75,000 days of manual analysis every year" - roughly the work of 333 civil servants. However, the time saved is expected to free up existing civil servants to do other work. The suite of AI tools are known as "Humphrey", after Humphrey Appleby, the fictional civil servant in the TV comedy Yes, Prime Minister. The government has previously said the introduction of AI would help reduce the civil service headcount - with hopes it could save as much as £45bn. Speaking today, Technology Secretary Peter Kyle appeared to take aim at expensive outsourcing contracts, saying: "No one should be wasting time on something AI can do quicker and better, let alone wasting millions of taxpayer pounds on outsourcing such work to contractors." 1:47 Move outside of London Other money-saving plans announced today include moving 12,000 civil servants out of London and into regional hubs - with the government hoping it can save almost £100m by 2032 by not having to pay for expensive leases of prime office space in the capital. Currently, 95,000 full time civil servants work in London. Tens of millions of pounds a year are expected to be saved by the closure of 102 Petty France, which overlooks St James's Park, and 39 Victoria Street, which is near the previous location of New Scotland Yard. In total, 11 London offices are slated for closure, with workers being relocated to the likes of Aberdeen, Belfast, Darlington, Bristol, Manchester and Cardiff. The reforms of the civil service are being led by Chancellor of the Duchy of Lancaster Pat McFadden - one of Sir Keir Starmer's most influential ministers. Mr McFadden said: "To deliver our plan for change, we are taking more decision-making out of Whitehall and moving it closer to communities all across the UK. "By relocating thousands of civil service roles we will not only save taxpayers money, we will make this government one that better reflects the country it serves. We will also be making sure that government jobs support economic growth throughout the country. "As we radically reform the state, we are going to make it much easier for talented people everywhere to join the civil service and help us rebuild Britain." The government says it wants senior civil servants out of the capital too - with the aim being that half of UK-based senior officials work in regional offices by the end of the decade. The government claims the relocations and growth of regional hubs could add as much as £729m to local economies by 2030. Union welcome - cautiously Unions appear to cautiously welcome the changes being proposed. All of Prospect, the PCS and the FDA say it is positive to see better opportunities outside of the capital. However, they have asked for clarity around whether roles may be lost and what will be offered to people transferring. Fran Heathcote, the general secretary of the PCS union, said: "If these government proposals are to be successful however, it's important they do the right thing by workers currently based in London. "That must include guarantees of no compulsory redundancies, no compulsory relocations and access to more flexible working arrangements to enable them to continue their careers should they wish to do so."
