• Dom. Mar 23rd, 2025

fifebusinessjournal.co.uk

fifebusinessjournal.co.uk

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The government has instructed the civil service to cut more than £2bn from its budget as part of the upcoming spending review. Chancellor Rachel Reeves is set to announce these spending cuts during the spring statement next week, ruling out tax rises as a solution. The FDA union has expressed concerns about the impact of these cuts on public services, emphasizing the need for honesty from the government. Civil service departments are expected to reduce administrative budgets by 10% initially, saving £1.5bn by 2028-29, followed by a 15% reduction the following year, saving £2.2bn annually. These administrative budgets cover areas such as human resources, policy advice, and office management, rather than frontline services. Chancellor Reeves has confirmed that there will be no tax increases in the spring statement, maintaining the government’s fiscal rules against borrowing for day-to-day spending. Instructions for these budget cuts will be provided to civil service departments by Chancellor of the Duchy of Lancaster Pat McFadden in the coming week. The government aims to reshape the state to be more efficient and effective, redirecting resources towards frontline services like education, healthcare, and law enforcement. The move to cut administrative costs follows the recent announcement of welfare cuts aimed at saving £5bn annually by the end of the decade. FDA general secretary Dave Penman welcomed the shift away from arbitrary headcount targets but raised concerns about the impact of such significant and rapid cuts on the civil service’s ability to deliver for the country. He stressed the need for clarity from ministers on which areas of work may be affected by these spending plans. Reeves rules out tax rises in spring statement as Civil Service ordered to cut £2bn+

Mar 23, 2025 Staff