Approximately 90,000 white-collar jobs in London could relocate to other parts of the United Kingdom as Prime Minister Andy Burnham accelerates his devolution agenda, according to a new report by recruitment firm Robert Walters. The findings come amid a broader policy push to address the UK's longstanding regional economic imbalance, with London and the South East having disproportionately dominated national output for decades.

Legal, banking, and accounting firms are among the sectors expected to shift thousands of roles away from the capital, seeking to leverage the government's regional empowerment policies alongside lower office costs and salary requirements, the report found. The trend builds on structural shifts already underway since the pandemic, with hybrid working models prompting many employers to reconsider the necessity of maintaining large central London footprints.

The relocation of these positions could deliver a £9 billion boost to regional economies over the next five years, Robert Walters estimated. That figure could climb to as much as £15 billion annually once increased local supply-chain activity and consumer spending are factored in.

"When professionals move into an area, the benefits ripple through the local economy," said Jonny Bohane, senior manager in Robert Walters' market intelligence team. "Increased demand supports everything from transport and housing to cafes, co-working spaces and the wider network of local businesses that keep these cities running."

The 90,000 roles represent roughly 2.5 per cent of London's total workforce, suggesting a rebalancing of employment rather than a wholesale departure of business activity from the capital, the firm noted.

London continues to anchor the UK economy, generating one in every four pounds nationwide and accounting for approximately 22.3 per cent of national GDP, according to Office for National Statistics data. The capital's outsized contribution has long fuelled debate over whether rebalancing growth geographically would strengthen the overall economy or simply redistribute existing activity.

Manchester, Birmingham, and Leeds are projected to be the primary beneficiaries of the decentralisation trend. Rising operational costs, increased tax burdens, and a shortage of prime office space that has driven up London rents are collectively pushing companies to evaluate relocation strategies. All three cities already host established financial and professional services clusters, with Manchester in particular having built out a significant presence of major banks and technology firms over the past two decades.

Burnham's Regional Strategy

Since taking office, Burnham has reaffirmed his pledge to deliver "good growth in every postcode," unveiling a series of measures designed to devolve greater authority to regional governments. In late July, he opened a "No 10 North" office to underscore the commitment. Greater Manchester was among the first English regions to secure a devolution deal with a directly elected mayor, and Burnham's model has been cited as a template for expanding similar arrangements to other combined authorities.

The employment migration is expected to build incrementally. Robert Walters projects that up to 12,000 roles will have moved out of London by the end of 2027, rising to 45,000 by 2029.

The North West stands to gain significantly, with an estimated 15,000 to 22,500 jobs projected to settle in the region by 2031—representing a quarter of all London outflows and potentially injecting £2.2 billion into the local economy. The Midlands is forecast to generate £1.8 billion, while Yorkshire could see a £1.3 billion uplift.

Daniel Harris, managing director UK&I at Robert Walters, said: "Manchester, Leeds and Birmingham are the engine rooms of [regional] activity."

"Over the last decade, these regional centres have become key career destinations for UK white-collar workers. They offer a significant presence of high-profile, multinational employers… as well as a lower cost of living compared to the capital."