Despite being home to national Government and the civil service, the public sector is a smaller part of the economy in London than in other regions of the UK. The public sector, however, is very important for London as it employs a large proportion of London’s workforce and has enormous spending capacity and influence on the local economy. The Institute of Local Government Studies at the University of Birmingham conducted an independent study into the scope for relocating a substantial number of public sector activities from London and the South East of England to other parts of the United Kingdom. It identified some 20,000 jobs that could move out of London and the South East. The study recommends that relocation plans should be urgently taken forward. A further 7,000 posts would no longer be required as a result of efficiencies.

Source: London Development Agency 2003 and Lyons 2000