Civil Service told by government to slash running costs by 15%

Civil Service told by government to slash running costs by 15%

Reportedly, government officials have revealed plans for the Civil Service to achieve over £2 billion in annual savings from administrative costs by the end of the decade. Civil Service departments will be directed to decrease operational expenses by 10% by 2028-29 and an additional 15% the following year, aiming to save £2.2 billion each year. The focus of the cuts will primarily be on areas such as human resources, policy advice, communications, and office management, rather than frontline services accessible to the public.

Despite assurances that front-line services will remain unaffected, union representatives for rank-and-file civil servant employees are concerned about potential job losses resulting from the changes. These unions challenge government ministers to be transparent about areas of work that may face discontinuation as a result of the cuts. The initiative is part of the government’s larger spending review, with Chancellor Rachel Reeves expected to present the Spring Statement on Wednesday.

A Cabinet Office source emphasized the necessity of reshaping the state to align with future demands and highlighted the importance of redirecting resources to front-line services like education, healthcare, and law enforcement. Minister Pat McFadden is reportedly set to instruct Whitehall departments on implementing the required cuts in the upcoming week. Both the ministers and top civil servants within each department will bear responsibility for executing these reductions.

Amid expectations of significant staff reductions, union leaders caution that slashing administrative costs could lead to public-facing repercussions and potentially compromise the quality of civil service delivery. Economic challenges such as disappointing growth figures and lower-than-expected tax revenues have intensified the government’s need to identify cost-saving measures within the public sector. Reeves has committed to refraining from tax increases or additional government spending, in line with strict fiscal guidelines set during the October Budget

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