9 September 2003
MORE THAN 20,000 PUBLIC SECTOR JOBS COULD BE RELOCATED FROM LONDON AND THE SOUTH EAST
The interim report of the Independent Review of Public Sector Relocation published today by Sir Michael Lyons said that it should be possible to relocate 20,000 or more public sector jobs out of London and the South East.
Potential benefits of public sector relocation include:
- cost savings to Departments through improved recruitment and retention and lower labour and accommodation costs;
- better service delivery to customers: and
- improved quality of life to employees due to lower house prices and commute times which are often half those of staff based in central London.
Sir Michael has also recommended that government departments should consult the Treasury on proposals to renew or take on new property leases in London and the South East. This is a practical common sense step intended to prevent actions taken now from influencing the final outcomes of Sir Michael’s review. The Chancellor has accepted this recommendation.
Sir Michael Lyons said:
“I am conscious I have set departments a demanding task in developing relocation proposals. I hope they will think hard both about the costs of operating in London and the South East, and the broader benefits of relocation discussed in my interim report. I have already seen some exciting proposals and am sure that others can come up with creative and robust proposals in response to my Review.”
Welcoming Sir Michael’s interim report, Chancellor Gordon Brown said:
“I am grateful to Sir Michael for his interim report into the scope for relocating public service activities away from London and the South East. I will study his report with particular interest and the final report due later this year. I am convinced that further decentralisation of public sector activities can lead to improved service delivery as well as provide a good deal for the taxpayer. Following Sir Michael’s review, I would expect relocation will more and more be employed for the efficient and effective management of the public sector.”
The Deputy Prime Minister, John Prescott, also commented:
“I will carefully study Sir Michael’s interim report and look forward to seeing the final report in November. Sir Michael’s review provides a good opportunity for departments to consider the regional balance of their activities across the United Kingdom while, at the same time, continuing to improve the quality and effectiveness of services to the public.”
Notes to Editors:
1. Sir Michael Lyons was asked by the Chancellor and the Deputy Prime Minister to carry out an independent study into the scope for relocating substantial numbers of public sector activities out of London and the South East.
2. The report identifies key issues surrounding public sector relocation as part of wider public sector reforms and outlines how they will be tackled in the remainder of the review.
Key areas for further consideration include:
- the scope for redesigning public service delivery – the possibility of joining up public sector activities;
- the effect of devolution and delivery on the ground. The potential for decisions taken locally to improve flexibility;
- the need to explore the economic and wider social benefits of transferring public sector activity to different locations; and
- a recognition that there are deprived areas in London and the South East.
3. In taking forward the review, Sir Michael has previously asked those who lead Government departments and their sponsored bodies to develop business case based relocation proposals, by 12 September, that recognise the cost savings and service delivery improvements that can be obtained through relocation.
4. Sir Michael and his team will appraise those proposals and in the light of commissioned research and will present his final report to the Chancellor and the Deputy Prime Minister in November.
5. The Chancellor announced the independent Lyons Review in his Budget 2003 statement on 9 April.
6. The interim report published today describes Sir Michael Lyons’ methodology and approach to the review and the context in which it is taking place. It also provides data on the current configuration of public sector staffing levels across the country as well as outlines of previous relocations. Copies of the interim report may be found on the Treasury website at: http://www.hm-treasury.gov.uk/lyonsreview
7. A public consultation is currently underway until 12 September 2003. Contributions should, where possible, be submitted by email to lyons.consultation@hm-treasury.gov.uk (preferably in Microsoft ‘Word’ or Adobe PDF formats) by Friday, 12 September but no later than the end of September. Contributions that cannot be sent electronically may be sent by post to:
Public Sector Relocation Project
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
8. Further information about the Review and the consultation process can be found on HM Treasury’s website: http://www.hm-treasury.gov.uk/lyonsreview
9. Sir Michael Lyons is Director of the Institute of Local Government Studies and a Professor of Public Policy at the University of Birmingham. He leads the department as part of the wider School of Public Policy on a part-time basis and has a series of other public and private responsibilities. Most notably, he is the non-executive Chairman of the English Cities Fund. He is Chairman of West Midlands Music Radio Ltd and a non-executive director of three companies: Wragge and Co, Parkman Group plc and Carlton Television (Central Region).
10. Sir Michael was knighted in January 2000 for services to local government after serving as the Chief Executive of three major local authorities: Birmingham City Council (1994-2001); Nottinghamshire County Council (1990-1994) and Wolverhampton Borough Council (1985-1990).
11. Sir Michael is a member of the Treasury's Public Services Productivity Panel and works closely with SOLACE, KPMG and Lagan Technologies Ltd. He also chairs the City of Birmingham Symphony Orchestra.
12. Recent activities include membership of the Independent Fire Service Review, which produced its report (the ‘Bain Report’) in December 2002.
13. Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.