How much will relocation save and what are the benefits?
It is clear that relocation out of expensive London and the South East will save money in the long term. A precise figure has not been determined, but will be worked up as departments start getting their relocation plans in place. It is clear also that the benefits from relocation include: the opportunity to make fundamental changes in business processes, working methods and culture; increased cost savings through aligning pay with local market conditions and therefore helping to maximise the economic benefits for receiving locations; strengthen cross-Government coordination which will lower the costs of early exits from London leases, and contain the risks of overheating property and labour markets in regional locations. Any efficiency gains would be in addition to the £21.5bn quoted for other efficiencies Sir Michael Lyons cost modelling estimated that 20,000 dispersals would break even after 6-7 years and could yield net savings of £2bn in 15 years Efficiency and relocations program
