I have mixed feelings about this. Firstly of course, most of these jobs shouldn't exist at all, at least in the public sector. Once they've been privatised we'll see soon enough whether the remaining jobs should be in the capital or elsewhere. Let the market decide. Secondly, I can sympathise with taxpayers outside of Edinburgh who must be rather annoyed that so much of their money is being spent in one city, albeit one in which I live and undoubtedly benefit from its capital status. On balance though, I think that I favour the decentralisation of public sector employment.
Mr Houston makes another point:
The benefits of relocation notwithstanding, all should recognise that an economically buoyant Edinburgh is in everyone's interest: you cannot have a vibrant country without a vibrant capital city.Is this correct? I don't think so - Edinburgh's (and London's) prosperity is to some considerable extent caused by governmental spending at the expense of the rest of the country.
Think about this: If Bern were to disappear off the face of the earth, would the rest of Switzerland continue more or less as before? I suspect that the answer is "Yes".