Whitehall departments will be mandated to outline strategies for relocating thousands of employees from London as part of their requests for financial support from the Treasury during the spending review process.
This initiative to shift civil service positions to various towns and cities throughout the UK aims to align governmental policy development more closely with the communities it impacts.
Currently, approximately one in five civil servants, totaling around 100,000, are situated in London, whereas about 70,000 are employed in the north-west of England. The total workforce of full-time civil servants in central government stands at 513,000, a significant increase from a recent low of about 380,000 noted in 2016.
The government anticipates that the relocation efforts could yield an economic boost of over £700 million for cities and towns such as Leeds, Glasgow, Cardiff, and Bristol by 2030.
The ‘Places for Growth’ initiative, which intends to move 22,000 officials beyond the capital, was initially introduced by Rishi Sunak during his tenure as chancellor in 2020 as part of the Conservative Party’s levelling up strategy.
However, Labour has now adopted this initiative as part of its broader reform goals for the state, which also include plans to eliminate over 10,000 positions, due to concerns that the civil service has grown too large and unwieldy in response to the needs arising from Brexit and the Covid pandemic.
To expedite this process, Pat McFadden, the Cabinet Office minister, plans to communicate with all Whitehall departments, informing them that their funding allocations in June will depend on the submission of their relocation proposals.
Additionally, the upcoming spending review will feature the inaugural strategic workforce plan for the civil service, assessing the current structure of Whitehall and its readiness for contemporary governance.
A government source stated, “We’re eager to enhance the government’s influence throughout various regions so that the civil service actively engages with communities across the UK, contributing to local development and employment opportunities.”
“The plans will facilitate more roles that are directly involved with frontline services, fostering a deeper understanding of the genuine challenges local services and residents face, and illustrating how central government policies can assist them. It is clear that central government cannot address local community issues solely from Whitehall.”
Employees based in regional offices outside of London will still be required to work a minimum of three days per week on-site.
Furthermore, the government is implementing an increased use of performance-related pay for senior personnel and enhancing performance management across the civil service, including expedited exits for underperformers.
