HISTORIC PRESS RELEASE : Launch of consultation on relocating public sector operations from London and the South East [June 2003]

The press release issued by HM Treasury on 19 June 2003.

A consultation about the scope for relocating certain public sector activities from London and the South East to other parts of the UK has been launched today.

In Budget 2003 the Chancellor, Gordon Brown, announced that he and Deputy Prime Minister, John Prescott, were commissioning Sir Michael Lyons to undertake an independent review into the scope for relocating some civil service and public sector jobs.

Sir Michael’s review will look at ways of modernising Government and improving delivery of public services while, at the same time, securing good value for money and quality outcomes for the taxpayer.

Sir Michael will be seeking the views of interested parties on the advantages and disadvantages of decentralisation and of relocation of public sector jobs.  He is particularly interested to:

• learn of previous and current relocations of activity, both in the private and public sectors;
• discover how businesses take advantage of advances in modern technology and electronic communications to allow people to be based away from the operational centre;
• learn about the strengths of locations outside London and the South East;
• hear views about the likely economic impact on the regions of moving public sector activities from London and the South East;
• receive views on how policy development and service delivery would be affected if further decentralised.

Commenting on the consultation, the Chancellor said:

“I attach the greatest importance to Sir Michael’s independent study.  It is essential that, in our determination to improve the quality of public services and secure a good deal for the taxpayer, we also look at alternative ways in which public services might be delivered including relocation to the regions and nations of the United Kingdom.   I hope that many individuals and organisations will contribute to Sir Michael’s review and look forward to studying his report and recommendations.”

The Deputy Prime Minister also commented:

“I welcome the opportunity for businesses and people to contribute their views and experiences to Sir Michael on relocating public sector jobs from London and the South East to the regions.  As well as ensuring better quality public services and value for money for the taxpayer, we need to improve the regional balance of economic activity.  This review will help us to do that.”

Sir Michael Lyons added:

“It is essential that we hear the views of as many people and organisations as possible.   Learning from past relocations, understanding the strengths of possible new locations, bottoming out the economic impact on the regions and visualising how government might look and perform as a result of further decentralisation will be key to the outcome of my review.  I would therefore urge those who can contribute to my study to do so – their contributions will be gratefully received.”