The new Home Office headquarters have been completed on time and on budget, it has been announced.

The offices at 2 Marsham Street in Westminster were completed under a private finance initiative deal, saving taxpayers £95 million over the lifetime of the contract.

Staff begin moving in next week and eventually 3,400 people will be housed there.

Sir Terry Farrell, whose previous work includes MI6 HQ and Charing Cross Station, was the architect of the project which has been designed to have a positive impact on those living and working in the area. 

The headquarters are a dramatic improvement on their predecessor - three 20-storey concrete tower blocks nicknamed 'The three ugly sisters' because of the blight they cast on the Westminster skyline.

Clarke said: "By moving to a newer, more efficient headquarters, the Home Office will save taxpayers around £95 million.

"This will contribute to the Home Office's programme to save £1.97 billion so that we can target more money at front line services like policing and border control.

"Two Marsham Street will be one of the most environmentally efficient public buildings of its type in the UK, with energy consumption designed to be at least 10 per cent better than government recommended levels.

"Bringing staff from several Home Office buildings into a single, modern, open-plan office space will considerably improve communication among officials working hard to build a safer, more cohesive society."