Recommendation 4

We are sceptical that the Government Hubs programme still represents good value for money in the current climate. The Government Hubs programme relocates civil servants from small offices into large, modern government hubs located in cities across the United Kingdom. The government plans to deliver at least 31 government hubs and, potentially, up to 50. Demand for office space has decreased since the pandemic and it is unclear what long-term impact this will have on commercial rents. Government has incomplete data on the usage of offices and, although new systems are being rolled out to gather such data, it is not yet available. From the limited data available, GPA has calculated at least a 25% reduction in office usage. It is therefore possible that fewer hubs, or smaller hubs, will now be required. Our witnesses were not able to tell us how many government hubs were on long-term, fixed leases. Without a clearer understanding of what is needed, the government risks being locked into long-term, expensive leases, the costs of which could be passed on to the departments that sublet space for years to come. Recommendation 4: In its Treasury Minute response to this report, the Cabinet Office should set out in detail the benefits and costs, including valuation drops compared to previous prices to date of the Government Hubs programme and how it will be adapted in-light of the new estimates for post pandemic office usage.