The UK civil service is set to slash over £2bn from its budget as part of the government’s latest spending review. Chancellor Rachel Reeves is expected to unveil these cost-cutting measures in the upcoming spring statement, ruling out any tax increases.
The move, first reported by The Telegraph, has sparked concern among civil service unions, who warn of significant impacts on public services.
Administrative Budgets to Shrink by 15%
Under the new directives, civil service departments must initially reduce administrative costs by 10%, aiming to save £1.5bn annually by 2028-29. The following year, these cuts will increase to 15%, totalling £2.2bn in savings per year.
The reductions will primarily affect human resources, policy advisory roles, and office management, rather than frontline services.
Chancellor Reeves reinforced her commitment to avoiding tax hikes, stating in The Sun on Sunday, “This is not a budget. We’re not going to be doing tax raising.”
She emphasized that previous tax increases on businesses and the wealthiest in the autumn budget were necessary but would not be repeated in the spring statement.
Unions Warn of Service Disruptions
The proposed cuts have drawn sharp criticism from civil service unions. Dave Penman, general secretary of the FDA union, acknowledged the shift away from crude headcount reductions but warned that such deep budget cuts will inevitably affect service delivery.
“The idea that these savings can come solely from cutting HR and communications teams is unrealistic,” he said. “Ministers need to be honest about what services will be impacted.”
Mike Clancy, general secretary of the Prospect union, echoed these concerns, cautioning that “a cheaper civil service is not necessarily a better one.” He urged the government to thoroughly assess what responsibilities the civil service can feasibly maintain under the new budget constraints.
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As departments brace for the impending budget reductions, ministers claim that reallocating resources from administration to frontline services will lead to positive changes, including more teachers, increased hospital appointments, and additional police on the streets.
However, the long-term impact of these cuts on government efficiency and public services remains to be seen.
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