Government office closures deliver over £17 million in annual savings

The UK government says it has secured more than £17 million in annual savings over the past six months by closing three central London office buildings and relocating staff into existing space within the public estate. The most recent closure is 10 Victoria Street, which ministers say will generate around £8.8 million a year in rental savings alone. The building has been vacated as part of a wider programme to reduce reliance on leased properties and consolidate departments into what officials describe as better used government offices.

The move follows the earlier closure of The Rookery and Clive House. Together, the three buildings are expected to deliver approximately £17.5 million in recurring annual savings. The Cabinet Office and Government Property Agency have framed the closures as part of a broader effort to cut estate costs and improve utilisation rates across the civil service portfolio.

Under current plans, 11 London buildings are due to close by 2030. More than 14,000 civil servants are expected to move out of rental properties and into space within the existing government estate. The strategy is intended to reduce operating costs while making fuller use of buildings that officials say are under occupied.

The programme also forms part of the government’s wider policy of relocating roles away from the capital. According to official figures, around 23,000 civil service roles have already been moved out of London. The government says roughly one third of senior civil servants are now based outside the capital, reflecting a shift towards a more regionally distributed workforce.

Further savings are anticipated from the planned closure of Caxton House, currently occupied by the Department for Work and Pensions. When staff relocate to Sanctuary Buildings, the government expects annual savings of around £19 million.

The reported figures relate primarily to reduced rental and running costs associated with vacated properties. The estate rationalisation programme continues as part of a longer term plan to reshape the size, cost and geographical footprint of the government’s office portfolio.