The UK Government has signed a 25-year lease at the Central Square development in Cardiff as part of the Government Hubs Programme.
The government has agreed to lease the 265,000 sq ft brand new, Cardiff city-centre development, which will accommodate over 4,000 public servants from several different UK Government departments.
HMRC will be the majority occupier and Central Square will become one of their regional centres. The office will be ready by 2020 for civil servants to occupy.
This major deal is the largest ever pre-let in Cardiff and represents a significant regeneration opportunity for the Welsh capital.
The Government Hubs Programme aims to transform the way the Civil Service works by consolidating various government departments into one building throughout the UK.
By consolidating government offices into multi-departmental hubs and introducing ‘smart working’ practices, the government hopes to increase efficiency and improve productivity among civil servants.
The government claims that the programme will deliver over a billion pounds of savings to the taxpayer, free up land for housing, and reduce government buildings from 800 to around 200 by 2022.
The hope is that, by bringing several different departments to work alongside each other in one building, greater collaboration and productivity will be encouraged within the Civil Service.
This announcement comes weeks after the government announced its New Waverley hub in Edinburgh, further highlighting the push to build up the Civil Service outside London.
Minister for government resilience and efficiency, Caroline Nokes, said: “This government is committed to delivering the best quality public services in every corner of the UK, and today’s announcement is an important step towards that.
“This new lease is great news for the city, and will deliver a range of benefits to people of Cardiff, from improved public space and transport, to better access to the Principality Stadium from the station.”
Welsh secretary of state Alun Cairns, said: “The UK Government already has a significant footprint in Wales and I believe that basing several departments in a single office in the centre of Cardiff demonstrates the impact we can make through greater collaboration.
“This will not only lead to better integration between departments and create an obvious cost-saving for the taxpayer, but will also send a clear message that the UK Government is visible, accessible and helping to improve people’s lives in Wales.”