The UK government is closing London offices at a breakneck pace to save £94 million a year
The UK government is accelerating the closure of costly central London offices at a rapid pace, with recent moves already delivering substantial savings and a broader plan on track to generate £94 million in annual taxpayer relief.
In an announcement on Tuesday (24 February), government said that over £17 million has been saved in rental costs over the past six months through the closure of three high-expense central London buildings: 10 Victoria Street, The Rookery, and Clive House.
Staff from these locations around 1,000 from 10 Victoria Street alone, have been relocated to underutilised spaces elsewhere in the existing government estate, such as 100 Parliament Street and 26 Whitehall.
The latest milestone came with the official closure of 10 Victoria Street, which is expected to save £8.8 million annually on its own. This follows September 2025 closures of The Rookery and Clive House, which together contributed £8.7 million in yearly savings.
The big relocation
These actions form part of the Plan for London, an efficiency initiative launched by the Government Property Agency (GPA) in May 2025. The program aims to close 11 central London buildings by 2030, relocate more than 14,000 civil servants, and achieve total annual savings of £94 million once fully implemented.
The next major step involves shuttering Caxton House, home to the Department for Work and Pensions (DWP), with staff moving to Sanctuary Buildings. That closure alone is projected to deliver an additional £19 million in annual savings.
“This latest closure is another milestone in our commitment to securing further savings for the taxpayer. By reducing the number of buildings we rent in central London, we’ve already saved over £17 million in the past six months, money that can now be better spent delivering on the public’s priorities,” said Cabinet Office Minister Anna Turley.
“At the same time, we’re taking more decision-making out of Whitehall and moving it closer to communities all across the UK, making it easier for talented people, wherever they are, to join the Civil Service and help us rebuild Britain.”
Decentralising the civil service
The initiative aligns with the wider Places for Growth strategy, which seeks to decentralise the Civil Service. Over 23,000 roles have already been relocated outside London under this effort, and the government targets having 50% of Senior Civil Service positions based outside the capital by 2030.
The push reflects ongoing efforts to rationalize the government estate amid fiscal pressures, building on earlier reductions in central London office footprints.
By consolidating into higher-quality, more efficient spaces and shedding expensive leases, the government aims to ensure every square foot of its property portfolio delivers maximum value for taxpayers.
While the closures support cost-cutting and regional rebalancing, they occur against a backdrop of hybrid working trends and broader civil service reforms. The pace of recent exits, from three buildings in six months, signals determination to hit the £94 million annual target well before the 2030 deadline.
