Sir Michael Lyons has called on senior civil servants to be moved out of London as part of a fundamental shake-up of Whitehall.

In a report published yesterday he said such a move would allow government to continue in the event of a terror attack in central London - and would save £2.3 billion if 20,000 posts were relocated.

Sir Michael said the final gameplan should involve moving 60,000 civil service posts outside the capital.

Unions warned, however, that any changes must be implemented following full consultation.