'Mini Whitehalls' hope for region

Prime Minister Gordon Brown's plans to move 15,000 jobs out of the capital will see clusters of civil servants established in different regions after what he described as a "Budget for the regions".

Officials from the region have been called to a summit in London next week to discuss plans for offices or Departments to be moved out of London.

Regions are already competing against each other to convince mandarins their area has the best case, Yorkshire being the first to produce a prospectus that has already been sent to Chief Secretary to the Treasury Liam Byrne.

Sheffield and Leeds, which have successfully convinced Government Departments to move there in the past, are seen as being in a strong position to benefit, while the likes of Hull, Bradford and South Yorkshire towns will also make strong cases.

Speaking to regional journalists the day after the Budget received a cool reception, Mr Brown defended Labour's economic plans in the wake of widespread manufacturing job losses across the region and financial services cuts hitting West Yorkshire.

"We expect over the next few months and years large numbers of new skilled jobs in each of your regions," said Mr Brown. "Our Budget is building for the future, it's a budget for jobs and for growth. It's a Budget for each region to have self-generating growth because of the measures we've taken."

Mr Byrne said: "Next week I will be bringing representatives of local authorities and the regions together to the Treasury, to the Office of Government Commerce, to begin looking at what plans departments already have in hand.

"What we want to do is see across regions new Whitehalls in the regions, campuses that bring together different parts of government in one place, to really boost local economic growth."

Mr Byrne said he wanted job relocations to help lead regions like Yorkshire through the economic recovery, and said Ministers and mandarins would examine each area's economic strengths when deciding where to relocate.

Yorkshire Minister Rosie Winterton said the region was already well placed to benefit.

Ms Winterton said the fact the Department of Health had moved jobs to Leeds and the Department of Business, Innovation and Skills had a base in Sheffield were good signs.

"There is existing evidence that these two departments both operate extremely successfully from here and I think that you can use that as a very good basis for building up the case for us being a very strong contender," she said.

Mr Byrne also revealed regions will be given a stronger say in how 5bn of public funding currently divided into different pots should spent to ensure it achieves maximum economic gain.

Meanwhile the Prime Minister said if Labour wins the election there would be more Cabinet meetings held outside London, despite criticism over the costs of such events.