Committee chairman Edward Leigh

A private finance initiative project to develop new headquarters for the Home Office has come under fire from an influential committee of MPs.

In its report, the Commons public accounts committee argued that staff numbers were poorly forecast, meaning that the new premises will be too small.

Similar situations have been experienced by staff at GCHQ, the Ministry of Defence and the former Department of Social Security.

Instead, MPs suggested that home secretary David Blunkett use it as an opportunity to move personnel out of London, and consider other departments that could use the new building instead.

"Poor forecasting of staff numbers means that the Home Office's new headquarters won't be large enough," said committee chairman Edward Leigh.

"In 1998, the Home Office expected staff numbers to fall to under 3,000.  In fact, they have increased to almost 5,000.  This means that around 1,500 staff cannot be accommodated in the new building.

"Given this shortfall, the Home Office needs to seize on the opportunity afforded by Sir Michael Lyon's review of relocation across central government to move staff out of London.

"I find it difficult to believe that 1,300 staff should need regular access to ministers and parliament and, now that there is insufficient space for the Prison Service to be headquartered in the new building, a regional location for the service's central staff should be seriously considered."