Chancellor Rachel Reeves has confirmed a 15% reduction in Civil Service running costs by 2030, with savings targeting administrative roles rather than front-line services. The cuts, part of a wider government spending review, are expected to eliminate around 10,000 jobs, as Whitehall departments receive instructions to find more than £2bn in annual savings, reports BBC.
Reeves told the BBC that the Civil Service had expanded significantly during the Covid-19 pandemic and had yet to return to pre-pandemic levels. She argued that technological advancements, including artificial intelligence, made the reductions feasible. "We are, by the end of this Parliament, making a commitment that we will cut the costs of running government by 15%," she said.
Cabinet Office Minister Pat McFadden will issue letters to departments outlining expected savings, with areas such as human resources, policy advice, communications, and office management set to be the main focus of reductions.
Unions have warned that the public will inevitably feel the impact of such cuts. Dave Penman, head of the FDA union representing senior civil servants, dismissed the idea that back-office cuts alone could deliver the required savings. "The idea that cuts of this scale can be delivered by cutting HR and comms teams is for the birds," he said, calling for transparency from ministers.
Mike Clancy, general secretary of the Prospect union, also raised concerns, stating, "Civil servants in all types of roles help the public and deliver the government's missions. Cutting them will inevitably have an impact that will be noticed by the public."
The decision comes amid mounting economic pressures, with sluggish growth, rising borrowing costs, and lower-than-expected tax revenues increasing the need for savings. Reeves has ruled out tax rises or significant increases in government spending, saying, "We can't tax and spend our way to higher living standards and better public services."
Prime Minister Sir Keir Starmer has echoed the need for reform, pledging to reshape the "flabby" state and reduce bureaucracy. Meanwhile, McFadden has promised "radical" changes to the Civil Service, including performance-based pay for senior officials and exit incentives for underperforming staff.
Reeves has committed to real-term increases in government spending each year but has not confirmed whether unprotected departments like the Ministry of Justice or the Home Office will face budget reductions. More details will be outlined in June’s spending review.
Critics from Labour’s left wing have compared the plan to Conservative-era austerity, but Reeves rejected this claim, pointing to Labour’s commitments, including £100bn in capital investment and £20bn for the NHS. "That is a far cry from what we've seen under Conservative governments in the last 14 years," she said.
Conservative shadow chancellor Mel Stride argued that Labour had left the economy in a "really vulnerable state," blaming rising borrowing costs on market uncertainty over the government’s handling of the economy.
Bd-pratidin English/ Jisan
