John Denham, in his insightful piece on radical Whitehall reform, cites former Prime Minister Gordon Brown's report On the Future of the UK and one of its proposals that up to 50,000 civil service posts could be moved out of London. This would make perfect sense, as the civil service has a long tradition of dispersing roles beyond Whitehall.
Since 1940, there have been five such programmes – the latest in 2019 – but, worryingly, they have had little impact on the London headcount, which remains stubbornly around 100,000. Senior roles remain disproportionately concentrated in the capital. A large-scale dispersal could become the catalyst for meaningful civil service reform.
The benefits are numerous: significant savings in pay and office costs, improved recruitment and retention – with 40-70% of roles recruited locally, reducing the 30% churn seen in London – and the opportunity to regenerate towns and cities across England. Relocations also generate private sector multiplier effects wherever they occur.
A new programme should aim high – with a maximum exodus. London should retain no more than 10,000 civil servants, focused on operational functions such as courts, museums and the frontline Department for Work and Pensions. The rest should relocate to a network of regional hubs, co-located with public and private partners.
These hubs should include towns and smaller cities – not just the major ones that mimic London's cost and congestion problems. While William Beveridge once remarked that ‘the besetting sin of the civil servant is to mix too much,' this is a moment to break that habit.
As capital budgets tighten, there is also a risk relocation decisions will be driven by reusing cheap public estate
We must also learn from the austerity years. Between 2010 and 2015, the civil service shrank by 15% overall, but regional cuts were far deeper.
The East Midlands and East of England lost around 23% of staff, and the North West lost more than 13,000 roles, mostly in frontline departments. London, by contrast, saw the smallest fall – less than 9% – and its share of the civil service actually grew. Senior roles were retained in the capital, while regional offices were hollowed out. We cannot repeat that mistake.
The current Places for Growth initiative risks falling short. Its reliance on blind recruitment – despite clear evidence of its limitations – makes it hard to build cohesive, place-based teams. It encourages a scattergun approach to job applications, undermining long-term workforce development and morale.
As capital budgets tighten, there is also a risk relocation decisions will be driven by reusing cheap public estate.
But the civil service's greatest asset is not its property, it is its people. Letting estate strategy dictate organisational design is the tail wagging the dog.
We still see functions placed far from the communities and sectors they serve.
The Office for Zero Emission Vehicles, for instance, is responsible for accelerating the transition to net zero transport, yet remains in London's Canary Wharf, far from the UK's automotive innovation hubs in the West Midlands and the North East.
We already have models that work. DragonGate collaborated with Tees Valley Combined Authority at the outset of the Darlington Economic Campus in 2019. That site had three vital ingredients: first, senior sponsorship – initially from Rishi Sunak at the Treasury – which cut through institutional resistance. Second, it aligned with a regional vision and acted as an anchor for growth. Third, it was well-resourced, with dedicated programme delivery.
At the time, sceptics said it would fail. Darlington lacked a university and a fast train link. But the model has proved successful.
Of course, there are challenges. Resistance from permanent secretaries, concerns from trade unions and upfront costs are inevitable. But these can be managed. Most roles will be recruited locally.
Those asked to move – mainly senior managers and specialists – can use the civil service's generous relocation terms. Others can be redeployed within London and the South East or replaced by volunteers. None of this is insurmountable.
History offers useful lessons. In 1915, it took the ‘shell scandal' to shake a civil service unprepared for war under Lloyd George's leadership. Again in 1940, what Sir Peter Hennessy called the ‘Hitler Reforms' galvanised Whitehall. By 1945, the civil service was described by historian Correlli Barnett as ‘better than Germany, better than the USA'. Today, a major relocation could offer that same ‘shock' to deliver root-and-branch reform, but only if driven from the top.
A new Dispersal Unit should be created, reporting directly to the Prime Minister. It must be led by an entrepreneurial figure, in the spirit of the 1990 Executive Agency project or the 2020 Vaccination Programme, with a clear mandate and timetable. It should work with mayors and combined authorities to align with regional strategies, and with the Cabinet Office and the Treasury to deliver credible relocation business cases. That work should include a wholesale review of quangos and arm's-length bodies.
The political and economic case for a Whitehall exodus is compelling. The risks are low. The time to act is now
David Werran, founder and chairman of DragonGate (DGMI) is a former senior civil servant who was responsible for directing the relocation of two government organisations involving several thousand staff. For more information visit: www.dgmi.co.uk
