LONDON (Reuters) - UK Chancellor Rachel Reeves is preparing to implement substantial spending cuts within the Civil Service, aiming for reductions exceeding £2 billion ($2.58 billion) per year by the end of the decade.
On Saturday, a cabinet office source disclosed that Reeves will likely announce these austerity measures during her half-yearly budget update set for Wednesday, March 26, 2025, alongside fresh economic forecasts.
The plan involves a 10% reduction in administrative budgets for civil service departments by 2028-29, targeting a further cut of 15% by 2029-30. These budget constraints are intended to streamline operations and prioritize frontline services, potentially reallocating resources to areas like education and public health.
“To deliver our Plan for Change, we will reshape the state so it is fit for the future,” stated a cabinet office source. “We cannot stick to business as usual. By cutting administrative costs, we can target resources at frontline services – with more teachers in classrooms, extra hospital appointments, and police back on the beat.”
The proposed administrative cuts will primarily impact back-office roles, including positions in human resources, communications, policy advice, and financial procurement management. However, frontline roles, such as those in border force and prisons, are notably spared from these reductions.
Union representatives have voiced concerns over the far-reaching implications of these cuts, anticipating significant job losses among civil servants. “The idea that cuts of this scale can be delivered by cutting HR and comms teams is for the birds,” warned Dave Penman, genral secretary of the FDA union. He emphasized, “Elected governments are free to decide the size of the civil service they want, but cuts of this scale and speed will inevitably have an impact on what the civil service will be able to deliver for ministers and the country.”
Prospect Union general secretary Mike Clancy echoed similar sentiments, asserting, “Government must remember that a cheaper Civil Service is not the same as a better Civil Service.” He cautioned that civil servants play a crucial role in helping the public and delivering on the government’s initiatives, implying that the reductions would be noticeable to the general public.
As of December 2024, approximately 547,735 individuals were employed within the Civil Service, a figure that comprises both temporary and permanent employees. The imminent changes, as noted by Cabinet Office Minister Pat McFadden, reflect an ongoing spending review, with Whitehall departments receiving directives next week regarding the specifics of the cuts.
Moreover, recent economic pressures, including disappointing growth figures and lower-than-expected tax revenues, have intensified the need for budgetary revisions. Last month, government borrowing costs soared unexpectedly, reaching £10.7 billion, significantly higher than the anticipated £6.5 billion.
Chancellor Reeves reaffirmed her commitment to avoid raising taxes or government budgets in her forthcoming Spring Statement, indicating a focus on stringent fiscal rules established in her previous budget. “We can’t tax and spend our way to higher living standards and better public services,” Reeves conveyed this week, noting the governmental constraints leading to necessary reductions.
Indeed, the government has targeted a broader strategy to save £5 billion annually by 2030 through proposed reforms to welfare programs, which include stricter eligibility criteria for Personal Independence Payments and adjustments to universal credit.
With looming changes to the welfare system coupled with civil service cutbacks, the discourse surrounding public service restructuring is growing ever more urgent. The efficiency drive seeks to provide better value for public funds, potentially incorporating technological advancements for administrative processes but heavily reliant on reducing civil servant numbers.
In conclusion, as Chancellor Rachel Reeves prepares to outline her vision of a restructured Civil Service, the repercussions of these drastic measures remain a point of contention among public sector workers and unions alike. It is clear that balancing financial responsibilities with the delivery of essential services presents an ongoing challenge for the UK government.
