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The government estate in and around the capital has shrunk by more than 295,000 square metres to slash waste and save money.

Costs of £90 million have been cut as leases have come up for renewal, with 99 properties being vacated according to the Cabinet Office.

Different departments have moved in together, with Cabinet Office staff going to the Treasury, and buildings have gone up for sale. Across the country holdings have been cut by 416,597 square metres.

Cabinet Office Minister Francis Maude said it had contributed savings of £5 billion in 2011/12, following last year's £3.75 billion.

"There will be no turning back in the hunt to root out waste," Mr Maude said.

Taking 43,000 jobs off the public payroll, limiting travel expenses, using fewer consultants and negotiating better deals with contractors has also reduced costs.