It is the latest step in the government’s drive to move 22,000 Civil Service roles from London to communities across the UK by 2030.
The Birmingham headquarters will include new ministerial offices, with ministers expected to spend a significant amount of time there as the government works to rebuild the UK.
The news of DfT creating a northern hub in Leeds comes on the back of the Chancellor, Rishi Sunak, this month, also confirming that the UK’s first-ever infrastructure bank will also be based in the city.
Over £65m has been allocated for the overall government hubs programme in 2021 to 2022 for office works and improvements.
DfT has already begun recruiting in Birmingham and Leeds, with 100 roles created so far.
These include senior civil servant positions, which otherwise would have been based in London, with attracting senior figures to these locations key to the success of the initiative.
Grant Shapps, Transport Secretary, said: “This is a historic move for the department and part of a significant wider culture change across Whitehall.
“Transport is absolutely vital to the local communities we serve and having hubs in major cities like Birmingham and Leeds will offer a fresh perspective on how we can better serve these areas.”