The government review into relocating over 20,000 civil servants from London to the regions has been put back five months.
The Lyons Review was due to publish its findings into the scope for relocation which could represent over 3m sq ft of office space being released on to the market this month.
Set up following the 2003 Budget speech, government departments were asked to submit their proposals for relocation or provide justification for staying in the South East in September, and the review team was due to start the process of implementing recommendations in December.
But Lyons’ recommendations will now not be submitted to the Chancellor and Deputy Prime Minister until March, and the handover or winding up of the team will not take place until next spring. It will be a further blow to the central London office market as government departments have been ordered not to carry out deals to renew or take new leases in London until after the review.
Treasury officer and Lyons team leader Jeremy Taylor said: “This is not so much a delay as an extension so we can engage more closely with the departments.”
The decision comes as development in Victoria has reached record levels.
