Report of the Lyons’ Review into Public Sector Relocation

The report by Sir Michael Lyons of his independent review of public sector relocation was published on 15 March. The report provides an exciting opportunity for Wales to become the location for Government Departments and Agencies that may be relocated from Whitehall or the wider South East region.  Wales will not be a candidate for relocation of activities carried out in London by Government Departments on an England-only basis.  Wales is a candidate for functions that are carried out on a UK basis such as DWP and Treasury.

I met with Sir Michael during the course of his review as did Sir John Shortridge and we highlighted the benefits that Wales has to offer as a potential home for the Whitehall, London and South East-based Departments and Agencies that may be relocated.  We emphasised the proud tradition and excellent reputation of the public sector in Wales and reminded Sir Michael of our success stories to date which include the setting up of the DVLA in Swansea and the relocation of Royal Mint to Llantrisant, Companies House to Cardiff, and the ONS and Patent Office to Newport.

A priority of this Assembly Government is to build on that success and to win yet more public sector dispersal projects for Wales.  A particular priority is also to target those areas that have not seen sufficient relocation projects to date, and are not the targets necessarily for the Assembly’s own relocation strategy.  We have been very active in marketing Wales as a potential location ever since the Lyons Review was first announced in last year’s Budget.  I established a special project team comprising experienced relocation and inward investment experts from among our officials and the WDA to drive forward our campaign.  An information pack for departments and agencies considering relocation has been produced and the team has attended conferences and other events involved with Lyons.

I am taking a keen personal interest and have already hosted a lunch for key influencers in Government Departments and Agencies that may potentially be involved in a move of location from the South East of England. Further promotional events are being planned and activity will be stepped up to a still higher level in a bid to induce further dispersals to come to Wales.

I am working very closely with the Secretary of State on this and he has been emphasising the advantages of Wales to his Cabinet colleagues.  We will work closely with local authorities and others so that all parts of Wales are considered for relocations.  Of course, all relocations do not derive from Lyons and we recently had the launch of a new Department of Work and Pensions facility at Pembroke Dock which serves clients living in London.  We will continue to present the most compelling case for further such opportunities.
   
The references to Welsh potential locations in the Lyons Review to current negotiations include the Office for National Statistics (ONS) considering relocating 600 posts from London to either Newport, where ONS has a very substantial presence already, or Bristol or Cardiff.

There is also a reference to a potential back-office DTI Human Resources office moving to Cardiff.  Job numbers are not thought to be large, but it will carry clout as it will be designated as a HR Centre of Excellence.  It is not thought to require new premises, as it may use spare capacity in existing DTI premises.

This is a very competition-driven exercise in which each region of England and its key office-oriented towns and cities and where appropriate on undevolved functions, Wales and Scotland will be going head to head to persuade Ministers and decision-making officials to relocate to their area.  The possible range of additional jobs that might relocate to Wales could be anywhere from 500-1500 depending on how much of the undevolved civil service units move at all and how many of these head-to-head contests Wales succeeds in.

We will continue to push claims for Wales and its most suitable locations, matching those locations with the candidate work packages.