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Rachel Reeves’ Civil Service plan issued dire warning as cuts only scratch surface.uk

The Chancellor is preparing to strip the Civil Service of a staggering £2 billion in annual funding, a move that could see swathes of workers let go.

Chancellor Rachel Reeves Visits Bury College Construction Education Facility

Britain currently has the highest number of civil servants since 2006. (Image: Getty)

Rachel Reeves is due to announce sweeping spending and job cuts to the Civil Service in tomorrow’s Spring Statement – but this may only be the tip of the iceberg. Britain currently has the highest number of civil servants since 2006, with 546,000 being paid for by taxpayers’ money. This figure came down during the Conservative-Liberal Democrats coalition, but began rising again after the Brexit referendum.

Numbers then spiked as the Covid pandemic began and have been on the up ever since, with 92,000 more staff members in December 2024 than March 2020. This equates to a steady increase of 5,000 people every three months since the onset of the pandemic, according to analysis by The Telegraph.

Whitehall Braces For Chancellor's Spring Statement Cuts To Civil Service Jobs

The Spring Statement is expected to bring sweeping spending and job cuts. (Image: Getty)

Callum Price from the think tank the Institute of Economic Affairs think tank suggested that axing Civil Service jobs on Wednesday

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 might be too little too late.

He told the outlet: “Cutting the Civil Service even by as much as 100,000 would only take it to the level it was six years ago.

“The Government should consider Civil Service reform through this lens, and be bold. Growth is rightly the Government’s priority, and it is clear more officials does not equal more growth.

“Starmer and Reeves should shrink the size of the state and the Civil Service with it, and let business and the private sector drive the economy.”

This comes as the Chancellor prepares to strip the Civil Service of a staggering £2 billion in annual funding, a move that could see swathes of workers let go, unions have cautioned.

Alongside Cabinet Office minister Pat McFadden, she is reportedly set to impose a mandate requiring all government departments to slash their administrative costs by 15% over the coming five years.

Mr McFadden’s imminent demands will concentrate on HR, office management and governmental communications roles. Union voices argue that these austerity measures could gnaw through nearly 10% of the entire Civil Service wage budget.

It’s also speculated that savings could be achieved through by adopting technology, specifically by using AI for administrative tasks.

A Cabinet Office insider told The Telegraph: “To deliver our Plan for Change, we will reshape the state so it is fit for the future. We cannot stick to business as usual.

“By cutting administrative costs we can target resources at front-line services with more teachers in classrooms, extra hospital appointments and police back on the beat.”

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