Culture dept wasting money on up-market postcodes
MPs have criticised the Department for Culture, Media and Sport’s (DCMS) “costly and inefficient” use of office space.
A report from the Public Accounts Committee (PAC) called on the department to offer better value for tax payers’ money, after finding that money appeared to be wasted on expensive office facilities.
The cost of accommodating each employee ranges from £1,000 a year to £30,000, but few organisations collect information on their individual costs to enable a comparison, PAC found.
Too many staff are based in London, despite no discernible need for them to be located in the capital, the report found. Six in ten staff are based in London, even though this costs an extra £3,000 a year per employee.
Moreover, the cost of some London offices are “exceptionally high”, PAC found, with half in expensive SW1 and W1 postcodes. MPs claimed it is “extraordinary” that the Football Licensing Authority pays £1,800,000 a year for West End offices for six employees.
Many facilities are also overly spacious, the report noted, with nearly half of all office space measuring above good practice. The department is missing potential efficiency gains, the report claimed, recommending some organisations consider sharing facilities.
Overall, the department was accused of adopting a “remarkably casual” approach to the management of office space, and thereby missing the opportunity to improve value for money.
The department plans to move 950 posts out of London by 2010. However, the PAC noted that this will still leave more than half of employees working in the capital.
A spokesperson defended the department’s use of office space, arguing it is “essential” its core staff are based close to parliament.
They continued: “DCMS has agreed efficiency plans with each of its sponsored bodies which include savings targets for accommodation and procurement.
Whenever leases on London properties come to an end or have a break-point, the business case for staying in London is rigorously assessed, with a presumption that they will relocate unless there is are strong operational reasons to remain in London.
“We have also been working with the Office of Government Commerce which is considering the accommodation of all government departments and sponsored bodies.”
