The government has introduced an immediate ban on central government departments and quangos signing new property leases unless they get Treasury approval.

The Efficiency and Reform Group, which was jointly launched by the Cabinet Office and the Treasury today – and is co-chaired by Francis Maude (pictured) – has stopped the signing of any new property leases or lease extensions as part of its £6.2bn cuts to public spending. The freeze will apply until the end of April 2011.

The group’s board will be chaired jointly by the chief secretary to the Treasury, David Laws, and Maude, who is minister for the Cabinet Office and Paymaster General.

The government also wants public sector bodies to vacate space they currently occupy.

There are set to be 644 leases that are either expiring or reaching a break clause in the 2010/11 financial year. The government does not plan to renew the leases that are expiring, and plans to exercise the break options that it can.

Of those 644 leases, 450 are in buildings that are used for back office functions. The Cabinet Office hopes to save £47m in rent by implementing this measure.

Its powers are designed to make departments work together to tackle waste and improve accountability across areas including procurement, property, and recruitment.

Maude said the group would ensure that central government takes a larger role in the drive for efficiency savings.

“We have got to get an immediate grip on Whitehall waste if we’re going to tackle this unprecedented £156bn deficit quickly, while protecting the quality of important front line services and getting the economy growing.  Good government can cost less,” said Maude.

He added: “It won’t do just to carry on as before.  By joining forces and concentrating our efforts where the money actually gets spent, we can make sure the maximum amount gets taken out of government overheads, not front line services.”

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