London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

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
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×