in the style of Austrlian Capital Territory, I mean. A new location for government that is as central in the country as possible and, quite possibly, completely created from scratch like Milton Keynes?

Govt. doesn't need to be in London, does it?

Sensationlist rag reporting on the story: http://www.telegraph.co.uk/news/politics/11027010/Minister-quits-because-120000-salary-and-expenses-is-not-enough-to-support-his-family-in-London.html