The Department for Education is
moving into the historic Old Admiralty Building as part of government efforts
to reduce estate costs.
The move will save more than
£19 million a year for the taxpayer, including an annual saving of more
than £8.5million for the Department for Education (DfE). The Grade II
listed building will also be transformed into a modern
workplace.
The freehold Old Admiralty
Building (OAB) is the largest of the Admiralty Buildings in Whitehall and has
been home to the Foreign and Commonwealth Office (FCO) since the 1960s.
However, DfE intends to move into the building in September 2017
following the FCO’s decision to leave the building and consolidate
its London staff into one HQ in the King Charles Street.
The DfE will release
its leasehold accommodation at Sanctuary Buildings as part of the
government’s ongoing work to streamline its property estate. Moving to a
freehold property provides excellent value for money as it means
the DfE will not have to renegotiate a lease and it will be much
cheaper to run in the future.
Refurbishment
of OAB will see the building transformed into a more modern working
environment with nearly double the number of workstations, while preserving the
site’s heritage. It is hoped that the re-development will involve greater
public access to this historic building.
The proposed move is the latest
step by DfE to reduce the cost of its property estate. Since May 2010
it has reduced the annual cost of its buildings by £17
million. DfE will save another £2.5million in 2014 through
moving out of buildings in Guildford, Cambridge and central
London.
Modernising the government
estate
The move is a direct result of
the Cabinet Office’s programme to consolidate and modernise the
government estate. By moving staff to alternative locations, encouraging
departments to share office space and developing more flexible ways of working,
the government has been able to sell unnecessary freeholds and exploit break
clauses in under-used leaseholds. So far, over 1,000 leasehold properties have
been vacated and over £1 billion raised for the taxpayer by selling more
than 770 buildings and land we no longer need.
Minister for the Cabinet Office
Francis Maude said:
As part of our long term
economic plan, we’re getting more value from our property by letting go
of properties that no longer suit our needs and reaping maximum benefit for
both the taxpayer and the wider economy.
This work saved hard working
taxpayers £620 million last year alone but we’re determined to go
further and this is a great example of a deal that not only releases property
elsewhere in our portfolio but delivers a modern office building that is needed
if we want to become the most effective civil service in the
world.
Education Minister Michael Gove
said:
By moving into the Old Admiralty
Building we will be saving the taxpayer millions and freeing up money that was
being spent on rent so it can be reinvested back into the department’s
budget.
This decision makes sense
financially and shows how the government is getting the most benefit possible
for every square metre of property we own and every pound of taxpayers’
money we spend.
The move follows the
announcement of a restoration project that
will see Admiralty Arch turned into a publicly accessible landmark hotel.
The 99 year lease agreement signed between the government and Prime Investors
Capital in October 2012 will raise an additional £60 million from the
sale of Admiralty Arch’s leasehold, as well as creating jobs within the
restoration project.