London Daily

Focus on the big picture.
Tuesday, Feb 24, 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
UK Economy Faces Acute Strain as Trump’s Global Tariff Reshapes Trade Landscape
UK Signals Retaliation Is Possible as New US Tariff Policy Threatens Trade Stability
British Police Arrest Former Ambassador Peter Mandelson in Epstein-Related Misconduct Probe
Australia Officially Supports Proposal to Remove Andrew Mountbatten-Windsor from Royal Succession
Victorian Premier Jacinta Allan remains silent on ISIS brides' resettlement plans in Melbourne
Former UK Ambassador Peter Mandelson Arrested in Connection with Jeffrey Epstein
Jacob Rees Mogg afraid to talk about Peter Mandelson arrest on “suspicion of misconduct in a public office” (Pedophilia, corruption, etc.)
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
President Trump warns countries against abandoning recent trade deals with the US
Diverging Polls Show Mixed Signals on UK Economic Revival as Confidence Remains Fragile
Spotify Expands AI-Driven ‘Prompted Playlists’ Feature to the United Kingdom and Other Markets
Greens and Reform UK Surge in Manchester By-Election, Threatening Labour’s Historic Stronghold
UK Businesses Push for Closer European Trade Links Amid Renewed US Tariff Uncertainty
Deloitte Global Overhaul Sparks Leadership Contest in the United Kingdom
University of Kentucky and Microsoft to Showcase Campus-Wide AI Innovation
UK Food System Faces Acute Vulnerability to Shocks, Experts Warn
Reform UK’s Proposed ICE-Style Deportation Scheme Triggers Sharp Backlash
U.S. Global Tariff Push Leaves Britain, Australia and Others Facing Higher Costs and Trade Strain
UK Police Officers Guarded 2010 Epstein Dinner Attended by Prince Andrew, Reports Say
US Trade Representative Affirms Commitment to Existing Tariff Agreements with UK and Other Partners
Activists at the Louvre hung a framed Reuters photograph of Andrew Mountbatten-Windsor slumped in the back of a car leaving a police station on the day of his arrest
The royal biographer said that he expected the police to 'look at the money trail' - including Sarah Ferguson borrowing money from Epstein
A Protestor screams in NYC: “Bill Gates is on the Epstein’s List…”
FBI and Secret Service Hold Press Conference After Shooting Incident at Mar-a-Lago
Mark Zuckerberg Testifies in Trial Over Social Media's Impact on Children's Mental Health
Maggie Oliver exposes Keir Starmer using letters to close child rapists investigations
Kouri Richie's wrote a children’s book to help her sons grieve the death of their father. Now she’ll stand trial for his murder
New York Braces for Major Snowstorm With Up to 18 Inches Forecast and Blizzard Warnings Issued
Mexican Military Kills CJNG Leader Nemesio Oseguera Cervantes as Violence Erupts Across Jalisco
Metropolitan Police Deploys Palantir-Powered AI to Flag Potential Officer Misconduct
UK Parliament Rebukes Police Over Ban on Israeli Football Fans
Britain Emerges Among a Small Group of Nations Without a Religious Majority
UK’s Manufacturing Base at Risk as Soaring Energy Costs Weigh on Industry
Matt Goodwin’s Unconventional Campaign for Reform UK in the Gorton and Denton By-Election
US Military Movements in the UK Spark Speculation Over Preparations Related to Iran Tensions
UK Faces Significant Economic Risk From Trump’s New Global Tariff Regime
UK Defence Secretary Signals Intent to Deploy British Troops to Ukraine
UK Students Mark Lunar New Year as Universities Adjust to New Equality Compliance Rules
UK Government Weighs Removing Prince Andrew from Line of Succession After Arrest
Prince Andrew’s Arrest in UK Rekindles Scrutiny Over US Handling of Epstein Records
Trump’s Strategic Warning to UK Over Chagos Islands Deal Sparks Diplomatic Whiplash
Starmer Government Postpones Local Elections Affecting 4.5 Million Voters
UK Economy Remains Fragile Despite Recent Upturn in Headline Indicators
UK Businesses Face Fresh Uncertainty Following US Tariff Ruling
Reform UK’s Senior Figures Face Scrutiny Over Remarks on Women and Family Policy
UK Electric Vehicle Drive Threatened by Shortage of 44,000 Qualified Technicians
University of Kentucky Trustees Advance Academic Reforms and Approve Coliseum Plaza Purchase
Boris Johnson Calls for Immediate Deployment of UK Troops to Support Ukraine
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
×