Embargoed: 00:01 Sunday 14 November 2021
The TaxPayers’ Alliance (TPA) have recommended £371 million of savings that can be found by moving 53,196 civil servants out of London to fast track the “levelling up” policy.
Currently, London-based civil servants cost a total of £1.2 billion a year, and more than four-fifths of government departments have a disproportionate amount of staff in the capital. Shifting roles to other parts of the country would offer savings on costs such as the London weighting, as well as move policy-making away from Westminster.
The government’s existing plans to move 22,000 civil servants out of London by the end of the decade would save £153 million every year. But TPA research shows that relocating a further 31,196 civil servants outside of London would save an extra £217 million a year. The proposals would mean each department would have around 40 per cent of their staff out of London on average.
Analysis also reveals that having Whitehall civil servants working from home for three days a week should deliver a saving of £731 million every year.
Following across-the-board funding increases for Whitehall departments in the budget last month, the TaxPayers’ Alliance is calling on the government to find sensible savings to reduce the strain on taxpayers.
The government spends a £710 million premium each year to keep civil servants in London. This incorporates the London weighting allowance and higher office costs. The majority of this premium is spent on London weighting allowance, which costs £418 million per year.
- The commitment to move 22,000 civil servants out of London by 2030 will reduce this spending by £153 million, to £557 million.
Two additional options for savings could also be realised:
A further 31,196 civil servants can be relocated outside of London, saving £217 million per year – a total of £371 million including the government’s current target.
- A £731 million saving from work from home policies can reduce the total expenditure on London-based civil servants by 60 per cent.
- A further 31,196 civil servants can be relocated outside of London, saving £217 million per year – a total of £371 million including the government’s current target.
Tom Ryan, researcher at the TaxPayers' Alliance, said:
“Moving civil service jobs out of London is both good for taxpayers and for getting government out into the real world.
“Paying for the prime location of Whitehall pen-pushers costs a small fortune, with operating costs alone running into the hundreds of millions, while keeping policy-making jobs locked in the capital.
“Roles should be relocated so that the civil service can be better opened up to the rest of the country and sensible savings can be made.”
TPA spokespeople are available for live and pre-recorded broadcast interviews via 07795 084 113 (no texts)
Media Campaign Manager, TaxPayers' Alliance
24-hour media hotline: 07795 084 113 (no texts)
Notes to editors:
Founded in 2004 by Matthew Elliott and Andrew Allum, the TaxPayers' Alliance (TPA) campaigns to reform taxes and public services, cut waste and speak up for British taxpayers. Find out more at www.taxpayersalliance.com.
TaxPayers' Alliance's advisory council.
- The TaxPayers’ Alliance previously called to move government offices out of London and end national pay bargaining in its landmark Save To Spend report.