Office space plan could fall flat for Government

Government attempts to raise cash by sub-letting unused office space could fall flat, warn experts.

With departments slashing their own running costs as part of the mission to show that everyone must carry part of the burden, less office space will be needed as civil servants are made redundant.

Several departments including the Treasury said they will rent out offices to private companies.

The Treasury, which plans to cut its own operating costs by a hefty 33%, will do so partly by "better management" of its estate. That includes sub-letting some sections of 1 Horse Guards Road, the Treasury building near St James's Park.

But property experts say not much government space is compatible with the needs of private businesses.

Chris Hiatt, national office agency chairman at Jones Lang LaSalle, said: "A lot of the space that the Government has is probably not good space. Certainly, it is not a quick fix, and it is unlikely to impact the London market."

Desirable properties such as Horse Guards Road will attract attention, but most will not, Hiatt says.

"London is undersupplied with good space, but not with poor space," he said.