Move 10,000 jobs North and save £78m

May 22 2008 by Adrian Pearson, The Journal

It was urgent four years ago

ON March 15, 2004, Sir Michael Lyons told the Government thousands of Civil Service jobs could be moved out of the capital to regions such as the North East.

In his review, "Well Placed to Deliver? – Shaping the Pattern of Government Service," Sir Michael said 20,000 jobs could move from London and the South East and recommended ministers should urgently take forward relocation plans in the 2004 Spending Review.

He told the Government its London bias did not reflect the large cost disparities between the capital and the rest of the country or benefit "the efficient delivery of government business".

The Government vowed to move 20,000 jobs by 2010, but has been criticised for failing to switch more.

Trading places

A PROPERTY expert said bringing government departments to the North East made economic sense, but there were complications.

Kevan Carrick, a partner in JK Property Consulting LLP and policy spokesman for the Royal Institution of Charter Surveyors in the region, said: "For leasing, offices in the West End of London would cost, very roughly, £40 to £60 per square foot, while some- where like Cobalt Business Park in North Tyneside would cost, if you are forecasting a couple of years ahead, £22 per foot.

"The big challenge is not one of valuation … It’s all a matter of how do you persuade your key staff to relocate?"