The chancellor has committed to a 15% reduction in government operating expenses by the end of the decade. Rachel Reeves told the BBC that administrative and back office work, not front-line services, will save money.
Although 10,000 jobs are anticipated to be lost, unions cautioned that the public would still feel the effects of the downsizing. It comes before the chancellor is likely to announce expenditure cuts for some government agencies in her Spring Statement on Wednesday. The action is a component of a continuous assessment of government spending that examines every aspect of operations.
Cabinet Office Minister Pat McFadden will send a letter to Whitehall departments next week, instructing them to make savings of over £2 billion annually by the end of the decade. It is anticipated that areas including office administration, communications, policy guidance, and human resources will be targeted.
Reeves stated on the BBC’s Sunday with Laura Kuenssberg show that the government intended to use savings to fund its priorities, including the NHS. She said that during COVID, the Civil Service’s size had grown “massively” and had not yet reached its pre-pandemic proportions.
By the end of this Parliament, we are making a commitment that we will cut the costs of running government by 15%,” she stated. According to Reeves, reducing operating expenses by this sum was “more than possible” in light of technological and artificial intelligence advancements.
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