New Relocation Plans Could Save Taxpayers Millions

12.00.00am UTC (GMT +0000) Wed 11th Feb 2004

The Treasury could be the first Whitehall department to be moved out of central London under new plans announced by Liberal Democrat Shadow Chancellor Dr Vincent Cable today.

While Treasury Ministers and a handful of top advisers would stay in London, up to 1,000 officials and the whole of Customs and Excise and the Inland Revenue could be moved to another location saving taxpayers millions of pounds in the process. The money saved on the exorbitant cost of office space in central London and additional London Weighting Allowance payments, could instead be spent on health, pensions and crime prevention.

Dr Cable said: "Why does the Treasury need 1200 civil servants in London occupying 230,470 square meters of very valuable central London office space?"

"Using the latest technology for teleconferencing, desk-based video-conferencing, e-mail, fax and mobile communications, there is simply no need for everyone to work in the same place any longer."

"A small group who advise ministers can stay in London; the rest can go. We estimate that if Customs and Excise, the Inland Revenue and 1000 Treasury officials (currently needlessly based in London) went to Merseyside and their London properties were rented out, over £84 million could be saved annually in this one department alone."

"This figure does not even include reduced costs due to no longer needing London weighting on salaries. Relocating other civil service departments could generate similar significant savings across the board."

Up to £17.5 million is also being lost every year simply because Government offices are lying empty in the principle cities of the UK. Relocating some government departments into these vacant offices out of London while renting out central London properties would result in greater savings.

Ends

Notes for Editors

The Liberal Democrats are currently conducting a department by department spending review led by David Laws MP. The spending review will result in detailed proposals such as the scrapping of the DTI and its industrial support functions; the elimination of seven other government ministries; and specific cuts such as the scrapping of the government's baby bond scheme. The Liberal Democrats aim to identify £5 billion (or 1% of Government spending) in savings to finance priority spending commitments in areas such as pensions, schools and the police.