Civil service relocations have slipped off the agenda since the coalition took over. That is the word among Treasury sources.

And with the new administration promising “fast and deep” cuts in next Tuesday’s emergency Budget, slimming down Whitehall will not be viewed as the quickest win by the government.

Yet former Reed Elsevier chief executive Ian Smith has “implored” it to take a longer-term view of his recommendations for moving 15,000 mandarins out of London by 2015, which were published with the last Budget in March.

Smith tells Property Week the government could vacate 5m sq ft of offices before April 2011 if they are “really aggressive about it”. But he says there is an obvious temptation to neglect relocations.

Smith, who has been advising on the Israeli-Palestinian peace process under envoy Tony Blair since his report was published, says: “I haven’t talked to the government, but I could see the temptation to let relocations slip off the agenda. We need severe cuts in public spending and I think it’s going to be a very tough agenda to pursue. There is a danger that you look at the bigger numbers and therefore think that relocation does not have a role.”

Before the election, Conservative adviser Martin Read said 10% of government offices could be vacated this financial year. Smith agrees this is a realistic goal, but only part of the “prize”.

“There are two ways to see my review. One is the numbers we are talking about – just over £1bn of net savings and £150m a year in running costs after five years. Frankly those pale into insignificance compared with the £6bn the government has talked about.

“Or you could view my relocations project as part of the trigger for a more fundamental transformation of the way government works and a contributor to bigger savings. It is an opportunity to create more vibrancy and wealth in the regions.”

Smith insists his proposal to create “regional hubs” is compatible with the current agenda, despite the scrapping of regional planning and development agencies.

“This is a way of not only cutting costs once, but a way of keeping those costs sustainably low.”

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