Ministers have scrapped plans to move thousands more civil service jobs from London to Birmingham and Newcastle.
The move has been criticised by Conservative MPs, who are calling for an “urgent explanation” and a recommitment to the levelling-up agenda.
The Government Property Agency, which falls under the Cabinet Office, said in a brief reference in its recent annual report and accounts that a decision had been “made by ministers” to axe the proposals after “a review identified that they no longer aligned with strategic requirements”.
This was despite the fact more than £1m had been spent on the two projects as part of the flagship government drive to spread the civil service out of Whitehall and boost growth in the regions.
Tory MP John Stevenson, who chairs the Northern Research Group of Conservative MPs, said the move was a “step backwards”.
The decision to axe the latest phase affecting Birmingham and Newcastle has raised questions about the level of commitment to completing the task, with government insiders citing the short-term cost implications as a brake on progress.
Conservative mayor of the West Midlands, Andy Street, said the project in Birmingham has fallen victim to the trend towards working from home.