London Daily

Focus on the big picture.
Friday, Apr 03, 2026

How to move the public sector out of London

How to move the public sector out of London

Moving public sector jobs out of London is fashionable once again. As part of its “levelling-up” agenda, the government wants to shift policymaking away from the capital. Tony Hall, the outgoing BBC boss, wants to move two-thirds of jobs at the broadcaster to the provinces. At the weekend, the Conservative party chairman floated the idea of moving the House of Lords, Britain’s upper chamber, to York.
This would be a reversal from the past decade. Regional offices bore the brunt of austerity and attempts to reduce waste, undoing attempts by the New Labour government to help “left-behind” regions following the 2004 Lyons review. The number of civil servants working in Yorkshire fell about 29 cent between 2010 and 2018, compared with 9 per cent in London.

The first reason to move government out from London is to improve the quality of decision making. Britain’s institutions are mostly run by people living in the south of England, making them unrepresentative of the country at large. While about 30 per cent of civil servants are based in London and south-east England — in line with those regions’ share of the UK’s population — 68 per cent of the most senior civil servants are based in the capital, according to the Institute for Government.

Such narrow geographical representation can lead to similar ways of thinking and, according to research, a bias towards investing in the south-east. The Treasury, alleged to be among the worst offenders, has virtually no regional presence. London’s over-representation is getting worse: the Department of Digital, Culture, Media and Sport, one of the fastest-growing departments given its responsibility for the digital economy, is similarly concentrated in the capital.

The second reason is economic development. Moving back-office jobs to poorer parts of the country can help: even low-level clerical work can be a step up from many of the low-paid jobs that replaced heavy industry. Public sector wages are a direct transfer from more prosperous areas and can help provide the sort of stable incomes that, in turn, support local economies. Moving jobs can also help the taxpayer because the Treasury does not need to pay the premiums necessary in London.

Senior managers provide the biggest boost to the wider economy. Access to regulators and decision makers plays a role when businesses decide where to locate. Likewise, there is some evidence that a critical mass of knowledge workers is necessary for an area to thrive.

The record, however, is not encouraging. Research by the Centre for Cities, a think-tank, found that shifting the Office for National Statistics to Newport in South Wales following the Lyons review provided little benefit to the wider economy, partly thanks to its location on an out-of-town campus. The BBC’s partial move to Salford, in England’s north-west, mostly displaced jobs elsewhere and had little impact on the wider economy in the region, according to the think-tank, although recent reports suggest this is changing.

The Government Estate Strategy, published in 2018, called for three new “specialist government clusters” in cities with good transport and academic links that can then attract more investment. This is the right approach. Instead of spreading government thinly all over the country, it is better to try to build hubs where senior managers and ambitious new starters have opportunities over their entire careers.

The next step is to carry out an audit of what can be moved out of the capital and think strategically about where it can best improve economic growth. Only then will the “levelling-up” agenda become more than a slogan.
Newsletter

Related Articles

0:00
0:00
Close
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
×