Government departments such as the Treasury are to lease out office space to smaller businesses in an effort to hit targets for a 33% cut in operational spending. They hope that the current dearth of office space in London will be to their advantage.
Some office space may raise significant interest, such as the property owned by the Treasury at 1 Horse Guards Road near St James’s Park. However, much of the space will be in less prestigious locations and experts predict that the space offered will not be suitable for private businesses.
Sceptics responded that the move by the government probably won’t make a great deal of difference to the capital’s lack of offices; London has plenty of substandard office space, the problem is the lack of high-quality property.
However, increasing job losses in the public sector will see rising levels of unoccupied London office space in the foreseeable future.