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Civil servants could move to West Midlands in savings plan

Civil Service departments could be based in the West Midlands under proposals to move them out of London.

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Shadow Chancellor Ed Balls told an audience in Birmingham the party would ask every government department to draw up a plan to relocate civil servants.

The intention would be to save money and spread jobs around the country.

Mr Balls said: "Our review – led by the shadow chief secretary to the Treasury Chris Leslie – has found that the proportion of civil service jobs located in London has actually increased since 2010.

"This needs to change if we are to make savings to help get the deficit down and rebalance the economy too.

"So I will ask every government department to draw up a plan for civil service relocation outside London. And a Labour Treasury will set an objective for savings over the course of the next decade."

The idea is one that has been called for by Dudley North MP Ian Austin.

Mr Balls also said the closure of regional development agencies, including the £300 million a year Advantage West Midlands, had left councils and business leaders with 'too little power and too little resource to really make a difference'.

"The next Labour government will radically devolve power and £30 billion of funding over a Parliament to city and county regions in every part of England," Mr Balls said. "Not just a Northern Powerhouse, but a Midlands Powerhouse too. Devolution not just to cities, but across all our towns and county regions too.

"With our plans, local areas will be in the driving seat on key decisions affecting their local economies. We will give groups of local authorities substantial new powers over back-to-work schemes, to drive house building, and to integrate, invest in and plan transport infrastructure."

He also criticised George Osborne for floating the idea of a Birmingham elected mayor two years after it was rejected by voters in a referendum.

"Those places which choose to have a combined authority but not to have an elected mayor should not be short-changed by this government."

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