London Daily

Focus on the big picture.
Thursday, Oct 30, 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
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
Rachel Reeves Signals Tax Increases Ahead of November Budget Amid £20-50 Billion Fiscal Gap
NatWest Past Gains of 314% Spotlight Opportunity — But Some Key Risks Remain
UK Launches ‘Golden Age’ of Nuclear with £38 Billion Sizewell C Approval
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
British Journalist Sami Hamdi Detained by U.S. Authorities After Visa Revocation Amid Israel-Gaza Commentary
King Charles Unveils UK’s First LGBT+ Armed Forces Memorial at National Memorial Arboretum
At ninety-two and re-elected: Paul Biya secures eighth term in Cameroon amid unrest
Racist Incidents Against UK Nurses Surge by 55%
UK Chancellor Rachel Reeves Cites Shared Concerns With Trump Administration as Foundation for Early US-UK Trade Deal
Essentra plc: A Closer Look at a UK ‘Penny Stock’ Opportunity Amid Market Weakness
U.S. and China Near Deal to Avert Rare-Earth Export Controls Ahead of Trump-Xi Summit
Justin time: Justin Herbert Shields Madison Beer with Impressive Reflex at Lakers Game
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
Giuffre’s Memoir Alleges Maxwell Claimed Sexual Act with Clooney
House Republicans Move to Strip NYC Mayoral Front-Runner Zohran Mamdani of U.S. Citizenship
Record-High Spoiled Ballots Signal Voter Discontent in Ireland’s 2025 Presidential Election
Philippines’ Taal Volcano Erupts Overnight with 2.4 km Ash Plume
Albania’s Virtual AI 'Minister' Diella Set to 'Birth' Eighty-Three Digital Assistants for MPs
Tesla Unveils Vision for Optimus V3 as ‘Biggest Product of All Time’, Including Surgical Capabilities
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
Convicted Sex Offender Mistakenly Freed by UK Prison Service Arrested in London
United States and China Begin Constructive Trade Negotiations Ahead of Trump–Xi Summit
U.S. Treasury Sanctions Colombia’s President Gustavo Petro over Drug-Trafficking Allegations
Miss USA Crowns Nebraska’s Audrey Eckert Amid Leadership Overhaul
‘I Am Not Done’: Kamala Harris Signals Possible 2028 White House Run
NBA Faces Integrity Crisis After Mass Arrests in Gambling Scandal
Swift Heist at the Louvre Sees Eight French Crown Jewels Stolen in Under Seven Minutes
U.S. Halts Trade Talks with Canada After Ontario Ad Using Reagan Voice Triggers Diplomatic Fallout
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
×