• Dom. Abr 27th, 2025

fifebusinessjournal.co.uk

fifebusinessjournal.co.uk

Chancellor Rachel Reeves plans to cut £2bn in costs by axing 10,000 civil service jobs, as reported in Politics News. Reeves is confident that these cuts, focused on back office roles, will free up resources for front line services. The spring statement will reveal these spending cuts, ruling out tax rises. However, the FDA union urges honesty about the impact on public services. Reeves acknowledges that the cuts will not be pain-free but emphasizes the need to prioritize better public services. The Chancellor aims to reduce administrative budgets by 10% initially, saving £1.5bn annually by 2028-29, with a further 15% reduction the following year, saving £2.2bn annually. Taxes will not be raised in the upcoming spring statement, as Reeves maintains fiscal rules against borrowing for day-to-day spending. Civil service departments will receive guidance from the Chancellor of the Duchy of Lancaster to implement these changes. Chancellor Rachel Reeves announces plan to cut 10,000 civil service jobs and reduce costs by £2bn

PorStaff

Mar 23, 2025

The chancellor expressed confidence in cutting 10,000 civil service jobs to reduce the budget by more than £2bn, particularly focusing on back office roles to prioritize front-line services. Rachel Reeves of Sky News revealed plans for spending cuts in the upcoming spring statement, ruling out tax increases.

The FDA union urged transparency about the impact of these cuts on public services. Reeves acknowledged that the process will not be without challenges but emphasized the need to allocate resources towards improving public services.

The chancellor highlighted the need for efficiency by eliminating unnecessary roles and expenses, such as travel budgets, consultants, and communications. She emphasized the importance of reallocating resources to essential services like schools, hospitals, and police.

Civil service departments are expected to reduce administrative budgets by 10% initially, aiming for further reductions in the following years. Reeves reiterated that tax increases are not on the agenda for the spring statement, emphasizing the government’s commitment to fiscal responsibility.

Instructions for restructuring the state to meet future needs will be communicated to civil service departments in the coming week by the Chancellor of the Duchy of Lancaster.

A Cabinet Office source stated that sticking to business as usual is not an option. By reducing administrative costs, resources can be redirected to frontline services such as more teachers in classrooms, additional hospital appointments, and police presence on the streets. This move follows the government’s announcement of welfare cuts aimed at saving £5bn annually by the end of the decade.

FDA general secretary Dave Penman expressed support for moving away from crude headcount targets but emphasized that the distinction between back office and frontline is artificial. He cautioned that significant cuts will impact the civil service’s ability to deliver for ministers and the country. Ministers must specify which areas of work will be affected by spending plans and be transparent about the impact on public services.

Mike Clancy, general secretary of the Prospect union, cautioned that a cheaper civil service does not equate to a better one. Prospect has advised against arbitrary headcount cuts for the sake of saving money rather than genuine reform. The government claims they will avoid this pitfall in the future.

However, this will necessitate a thorough evaluation of what the civil service will and won’t do going forward.»

A source from the Cabinet Office emphasized the need for a departure from the norm, stating, «We cannot stick to business as usual.» The source highlighted the importance of reducing administrative costs to redirect resources towards frontline services, such as increasing the number of teachers in classrooms, providing extra hospital appointments, and putting more police officers back on the streets. This strategic shift follows the government’s recent announcement of welfare cuts aimed at saving £5bn annually by the end of the decade.

The FDA general secretary, Dave Penman, expressed support for moving away from «crude headcount targets» but cautioned against the artificial distinction between back-office and frontline roles. Penman pointed out that significant and rapid cuts would inevitably impact the civil service’s capacity to deliver services for ministers and the country. He highlighted that the proposed budget cuts would affect a substantial portion of staff in many departments, with the mentioned £1.5bn savings representing nearly 10% of the civil service’s salary bill. Penman urged ministers to clearly outline which areas of work they are willing to cease as part of the spending plans. He dismissed the notion that such extensive cuts could be achieved solely by reducing HR and communications teams, emphasizing the necessity for transparency regarding the repercussions on public services.

Mike Clancy, the general secretary of the Prospect union, cautioned against prioritizing cost reduction over genuine civil service reform, stating that «a cheaper civil service is not the same as a better civil service.» Clancy reiterated Prospect’s longstanding warning against setting arbitrary targets for civil service headcount reductions solely for financial savings. He called for a thorough evaluation of the future roles and responsibilities of the civil service to ensure meaningful reform rather than mere cost-cutting measures.

In conclusion, both union leaders underscored the importance of thoughtful and deliberate decision-making in restructuring the civil service. They emphasized the need for transparency, honesty, and a focus on improving public services rather than solely reducing expenses. As the government embarks on significant changes to the civil service, it will be crucial to consider the long-term implications for service delivery and the workforce’s ability to meet the country’s needs effectively. The chancellor – confident 10,000 civil service jobs can be cut

Rachel Reeves – Sky News

spring statement

The Telegraph

Reeves concedes cuts won’t be pain-free

Sunday Morning With Trevor Phillips

telling The Sun On Sunday

SOURCE

Por Staff

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