BIS Sheffield/Government Departments outside London

Ruth Cadbury Excerpts

Monday 9th May 2016 Commons Chamber

[Paul Blomfield]

The hon. Gentleman makes an important point. We saw a process of consultation, which concluded on 2 May. The trade unions, working with the affected staff, have put in some substantial submissions and alternative proposals, and I shall be seeking reassurances from the Minister that they will be properly considered and their merits given the weight they deserve.

As a number of Members have commented, the “BIS 2020” review might result in some relocation of staff and in the concentration of policy staff in some areas. However, the idea that all policy functions need to be concentrated in London is simply absurd. It is even more ironic, given the wider Government policy that my hon. Friend the Member for Stockton North (Alex Cunningham) has just mentioned.

This year’s Budget committed the Government to moving out of “expensive Whitehall accommodation”. The Cabinet Office recently launched a raft of measures in a bid to diversify the civil service, after one of the Bridge report’s key findings was that students from lower socio-economic backgrounds were “less likely to move” to London. One such measure that the Cabinet Office is recommending is to take graduate recruitment

“outside of London by establishing regional assessment centres”.

The most recent “Government’s Estate Strategy” expresses a commitment to

“turn around the prevailing tendency to locate head office staff in central London”.

That is Government policy.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Does my hon. Friend agree with me, a London MP, that centralisation and the relocating of staff presents a problem for London? It leads to congestion, more overheating, incredibly expensive accommodation, and so on. Most graduates cannot afford to rent in London, let alone buy their own property.

[Paul Blomfield]

My hon. Friend makes an important point. No one wants this to be seen as a north versus south issue. The proposal flies in the face of logic for both north and south. It makes no sense to add to the overheating in London, so we share a common agenda on that.

Colleagues commented earlier on the northern powerhouse agenda, which Sheffield and south Yorkshire have been deeply involved in and embrace. It is about encouraging the private sector to invest in the north, to build there, to relocate there, and to revive its economy, but if the very Department responsible for building the northern powerhouse wants out of the north, withdrawing 247 highly skilled jobs from the local economy with it, what message does that send?

Today’s debate came about because our key questions were not answered by the permanent secretary. Now is the Minister’s opportunity, so I want to conclude by asking four questions, to which Members and the hard-working staff of the BIS office in Sheffield have been seeking answers since January. I gave the Department advance sight of the questions last Wednesday to allow for full consideration and comprehensive answers. First, in reaching the decision to close the Sheffield office, what assessment has been made of the additional costs of moving the posts to London? That is the core question that we have been asking all along. Secondly, what assessment of the decision has been made against the Government objectives of moving out of expensive Whitehall accommodation, diversifying the civil service, and not locating head office functions in the capital? Thirdly, what assessment has been made of the impression created by the decision to move to London the functions of an office of the Department responsible for the northern powerhouse? Fourthly, aside from the proposals to centralise policy functions in London, what consideration has been given to the other options for achieving the “BIS 2020” objectives?

I understand that the decision, which was at one stage to have been taken by the BIS board tomorrow, has now been postponed and will be announced in the week commencing 23 May. I hope that that reflects a willingness to think seriously about the concerns that have been raised. I hope the Minister recognises that if the proposal goes ahead, the National Audit Office scrutiny we propose in today’s motion will find it flawed. I hope that she will therefore accept that it is the right time and in the interests of good policy making, effective use of public funds and confidence in the case for the north to exert ministerial authority and pull the plug on the closure of the Sheffield office.