28.06.10
Birmingham urges government to fast-track Whitehall relocation
After Chancellor of the Exchequer, George Osborne, announced yesterday the first of probably several measures to reform the public sector, Birmingham City Council urges government to fast-track Whitehall relocation as a means to cut costs, tackle regional economic differences in the UK and encourage wider public sector reform.
Stephen Hughes, Chief Executive of the largest local authority in Europe, says that government must not shy away from upfront costs, but use the current appetite for change, the recommendations of the Ian Smith Report and the need for deep and lasting cuts, to remodel and decentralise the public sector. Moreover, moving parts of Whitehall out of London would help address regional economic imbalances – another issue that the government is trying to address.
“Relocation can be the catalyst for a new approach to public services,” said Stephen Hughes. “An approach where every single task, from a frontline service to a back office function, and every sequence of tasks, are designed to create as much value as possible for the customer.
“By focusing on outcomes and working backwards to create a public sector that delivers them with minimum waste, you quickly realise that an entirely different model to the one we have now is preferable – one where administrative functions aren’t duplicated from department to department, one where ‘legacy tasks’ aren’t handed down over time to be carried out more for their own sake rather than for their intrinsic value, and one where functions aren’t focused in London, out-of-touch with and making less contribution to the communities that they serve.
“Moving large parts of the public sector out of London gives the government a chance to rebuild it to be cheaper, fairer and more effective. The most compelling case for relocation isn’t lower property and staff costs, nor is it more even distribution of public-sector-generated wealth, nor is it connecting the sector with the communities it serves – it’s about the chance to start afresh.”
The 2004 Lyons Review recommended that a substantial number of public sector activities be relocated from London and the South East of England to other parts of the United Kingdom. While some departments moved functions to the regions, substantial relocation failed to take place. In March 2010, a report by Ian Smith also recommended significant civil service relocation and Stephen Hughes is eager that, this time, impetus is not lost:
“Since the Ian Smith Review, we have had a change of government and, while there are signs that the new government is warm to the idea of public sector relocation, recent decisions have focused on quickly cashable savings.
Relocating and reforming Whitehall can make a real and lasting cut in the deficit and we urge the government to strike while the iron is hot and reshape the public sector.”
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