New report calls for relocation of OFSTED civil servants from Whitehall to Lancaster

The research published today by the Northern Policy Foundation (NPF) - whose board members include a number of the 'Red Wall' Conservative MPs - includes a proposal to relocate the Department for Education's school inspection body OFSTED from Whitehall to Lancaster.

It also proposes moving the Ministry of Defence to Preston.

The report has been welcomed by Michael Gove, who is also Chancellor of the Duchy of Lancaster.

He said: “Over decades there has been a growing disconnect between the Government machine and those which it seeks to help.

"All too often departments and the senior ranks of the Civil Service recruit in their own image, restricting cognitive diversity and impacting the quality of policy development and delivery.

“Despite efforts of the past, all major Government departments are still based in London, with the concentration of senior, policy and economic jobs that comes with it.

“We can and will work to reduce the distance between Government and the people by relocating Government decision-making centres to different parts of our United Kingdom - including the North of England.

“This report adds to the economic, social, moral and intellectual imperative for change as well as laying out some of the benefits to levelling-up, decision making, tackling groupthink and ensuring that powerful voices within every arm of government are better in tune with the majority of public opinion.”

The report says that 49,500 roles could be relocated from Whitehall to the north with a potential positive economic impact of nearly £3bn a year.

Research by the NPF analyses the current structure of the Civil Service and previous attempts made over the past 70 years to relocate officials to help boost regional economies.

The paper authored by Tom Lees and Dr Sam Turnpenney, a former NASA data scientist, consists of a seven component Relocation Index to objectively assess optimal areas in the North of England which could benefit most from the agglomeration effects of relocating government departments and agencies.

The index looks at population size, skill levels, job density, productivity levels, digital connectivity, house prices and the relevant “location quotient” that matches each department’s needs.

The report proposes the creation of 11 clusters across the North of England where departments and agencies could be relocated.

It estimates that such a move could have an economic impact of nearly £3billion a year.

The proposal includes the relocation of:

HM Treasury - Leeds

Department for Education OFSTED - Lancaster

Business and jobs BEIS, Department for Work and Pensions - Stockton-on-Tees

Department for Health, NHS England - Liverpool

Department for International Trade - Trafford

Ministry of Justice Supreme Court HMCTS - Manchester

Department for Transport MHCLG - Warrington

Home Office, UK Border Force, HM Prison and Probation - Newcastle-upon-Tyne

DCMS OFCOM - Salford

DEFRA, Environment Agency - York

Ministry of Defence - Preston

The index also provided other alternative locations - such as Bolton, Darlington, North Lincolnshire, Middlesbrough and Sheffield - which could act as alternative cluster locations if needed.

Tom Lees, Director of the Northern Policy Foundation said: “The Civil Service, particularly the senior ranks, is in need of significant reform. It lacks diversity of thought, background and life experience.

“Moving Whitehall mandarins and roles out of London allows for recruitment of local people with different backgrounds who are hopefully more in tune with what the public thinks.

Given the proliferation of Zoom, Teams and other technology there is no real need to be in close physical proximity.

“There will be a great deal of institutional resistance to any changes from top of the Civil Service who benefit from the status quo and old boys and girls network.”

Roger Marsh OBE, Chair of the NP11 group of Northern LEPs said: "The North has long faced disparity in areas such as productivity, R&D spending and life expectancy compared to the south of the country, and the case made in this interesting and thoughtful report underlines the clear impact that relocating more senior, policy-focused public sector jobs would have upon opportunities across the region.

"With strengths in world-leading industries and an impressive talent roster, the North is a prime place for relocation - and, if delivered in the right way, relocation will in turn see departments reap the benefits and thrive."