CIVIL SERVICE RELOCATION IS NO PANACEA FOR THE NORTH

"The Government is wrong to assume that the relocation of civil servants away from London and the South East will lead to regional economic revival. Instead it risks putting unnecessary extra pressure on the underperforming economies of destination regions." This is the warning from the South East England Regional Assembly.

The Regional Assembly’s Executive Committee met recently to discuss the Assembly’s response to Sir Michael Lyon’s review of the location of civil servants in England. The Government commissioned the review in April this year to investigate "the scope of relocating a substantial number of public sector activities from London and the South East of England to other parts of the United Kingdom."

In its response to the review, the Assembly expressed concerned about three issues:

1. In the review the South East is grouped together with London which creates the false impression that the South East currently has a disproportionate number of civil servants. The reality is that the ratio of civil servants to population in the South East (1:147) is lower than in the North East (1:92) and North West (1:127) and is below the national average of one civil servant to 127 inhabitants.
   
   
2. The relocation of civil servants to the to the regions is meant to help kick start economic revival. The Assembly warns that it may have the opposite effect – the parachuting in of civil servants could price local people out of local housing, and the employment needs of the families of the civil servants could crowd out already frail local job markets.
   
   
3. The loss of valuable civil service jobs through relocation away from the South East could be detrimental to the economic well-being of the region. This is of particular concern in the priority areas of regeneration such as the south coast and East Kent where local economies will suffer if civil servants are relocated.

Nick Skellett, Chair of the Regional Assembly, said: "The Assembly fully supports the Government’s goal of reviving the economies of the underperforming regions. However, we do not think that relocating civil servants to these regions is the way to do it. Our region already has less than the national average of civil servants per had of population. The better solution is to equip all regions to improve their ability to grow and retain wealth-creating businesses. This sort of top down action could have the perverse effect of widening regional disparities, rather than narrowing them."

The Assembly has submitted its response to Sir Michael Lyons. His final report is expected to be published in November.

Contact

Lesley van Dijk, PR Executive - 01483 555223

Alex Butlin, PR Executive - 01483 555221

Notes to editors:

1. The Regional Assembly is the “voluntary regional chamber” for the South East. It was established in January 1999 to give a representative voice to the South East region which covers Berkshire, Buckinghamshire, East and West Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire, and Surrey.
2. The Assembly is made up of 111 members including elected councillors nominated by the region’s local authorities and 37 representatives from other sectors of the community (including business, trades unions, education, housing, health, sports, culture, tourism, faith groups, environmental, community and voluntary organisations).
3. The Assembly has three areas of core business:
1. It is the representative voice of the South East, engaging and representing its member organisations and, through them, the wider public.
2. The Assembly has a specific role under the Regional Development Agencies' Act 1998 to ensure the accountability of the South East England Development Agency (SEEDA) to the region.
3. The Assembly has been the Regional Planning Body for the South East since April 2001. It has responsibility for proposing strategic planning and transport policies to Government.

Last updated: 21 August 2007