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<p> </p><p>The move to 2 Marsham Street will reduce my Department's running costs
by £9 million a year from 2015-16. Overall, these changes will save the Government
£24 million a year.</p><p> </p><p> </p><p> </p><p>The Department does not have a lease
for 2 Marsham Street. Our co-location with the Home Office is formalised through an
inter-department Memorandum of Terms of Occupation.</p><p> </p><p> </p><p> </p><p>Since
2010, the Department has had considerable success in reducing the cost of its wider
estate through the rationalisation of retained office space and targeted building
disposals. This has seen the Department surrender six leasehold office properties
through a combination of lease breaks and expiries, generating net savings in the
period of around £7 million per annum. The Department has also successfully sub-let
surplus space across its leasehold office estate during the same period, reducing
the overall property costs by around £6.5 million per annum.</p><p> </p><p> </p><p>
</p><p>Building on this success, in 2013-14, we have already secured further savings
of £4.6 million by subletting further space in Eland House in London. Most recently,
the Department negotiated the early surrender of Eland House and is scheduled to relocate
to 2 Marsham Street.</p><p> </p><p><em> </em></p><p> </p><p>This illustrates the scope
for local government and, indeed, the public sector as a whole to make sensible savings
through better property management.</p><p> </p><p><em> </em></p><p> </p><p>In June
2013, supporting the Prime Minister's commitment to support the development of small
and medium enterprises, the Department agreed terms with business incubator providers
to take vacant space at 2 Rivergate House in Bristol and Bridge House, Guildford.
This is an important part of the Government's drive to assist the start-up and small
and medium enterprises business and we are also working with the Government Property
Unit on potential Government Space for Growth opportunities in other properties held
by DCLG.</p><p> </p>
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