Sir Michael Lyons has confirmed that departments have identified some 27,000 jobs that could move out of London and the South East and recommended that they should urgently take forward their relocation plans in the context of the forthcoming Spending Review.

Government Response: HM Treasury

Sir Michael Lyons said: “I am grateful to departments for their cooperation.  I believe that a new pattern of government service will contribute significantly to government’s policies for the reform of public services, improving regional growth, national competitiveness and devolution.  Government needs to take firm action to recast the pattern of its business in a way that better meets the needs of the nation in the new century.  I am certain that government can meet that challenge.”

Party Response: Liberal Democrats

Vince Cable MP, Liberal Democrat Treasury spokesman said: "The direction of this report is welcome, but it fails to address the important issue of whether senior decision making functions should be relocated from Whitehall.

"Relocation would not only save money, but it would decentralise decision making too.

"Sir Michael is right to propose cuts, but there is no indication about what the government proposes to do less of.

"Unlike the Liberal Democrats, this report does not begin to address the tough political choices that need to be made."

Forum Response: First Division Association

Jonathan Baume, FDA general secretary said: "Any proposed moves will need to be very carefully managed to avoid enormous disruption to the lives of individual civil servants and their families. There is also no excuse for compulsory redundancies at any levels of the service as a consequence of these proposals.

"We welcome the acknowledgement that major dispersals require considerable initial investment, and that any savings will only come in the long term. We will work closely with government and individual departments on the detail coming out of the report, but there is a strong case for focusing any proposed moves around the existing government Offices of the Regions network, which can provide structured policy and career hubs in the future."