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The Chancellor and Deputy Prime Minister asked Sir Michael Lyons, Director of the Institute of Local Government Studies at the University of Birmingham, to conduct an independent study into the scope for relocating a substantial number of public sector activities from London and the South East of England to other parts of the United Kingdom. Sir Michael published his final report (Well placed to deliver?: shaping the pattern of government service) on 15 March 2004 .
The report confirms that government departments have identified some 20,000 jobs that could move out of London and the South East and recommends that they should urgently take forward their relocation plans in the 2004 Spending Review. A further 7,000 posts would no longer be required as a result of efficiencies. Potentially, over £2 billion could be saved over 15 years as a result.
The report concludes that the pattern of government has to be reshaped. The concentration of national public sector activity in and around London is no longer consistent with Government objectives and does not reflect the large cost disparities between London and the rest of the country or benefits of dispersal for the efficient delivery of government business or for the regional economies. It acknowledges that London, as capital, needs a governmental core supporting ministers and setting the strategic policy framework.
Full details of the recommendations may be found on page 3 of the report.
The report is available for viewing on the HM Treasury website