.svg)
The government is set to instruct the Civil Service to cut more than £2 billion annually from its administrative costs by the end of the decade, Whitehall sources have told the BBC.
Under the new plans, departments will need to reduce their operational expenses by 10% in 2028-29, followed by a further 15% cut the next year. These efficiency measures are expected to generate savings of £2.2 billion each year.
While front-line services that directly assist the public will remain unaffected, cuts will target areas such as human resources, policy advisory roles, communications, and office management.
However, unions representing civil servants argue that these reductions will inevitably lead to significant job losses. They are calling on ministers to be transparent about the specific areas of work that will be eliminated as part of the cost-cutting efforts.
The BBC understands that these cuts are part of the government’s ongoing spending review, with Chancellor Rachel Reeves set to outline further details in her Spring Statement on Wednesday.
A Cabinet Office spokesperson stated: “To deliver our Plan for Change, we will reshape the state to ensure it is fit for the future. We cannot continue with business as usual. By reducing administrative costs, we can redirect resources towards essential front-line services, including more teachers in schools, additional hospital appointments, and more police officers on the streets.”
As of December 2024, the Civil Service employed approximately 547,735 people, including temporary and casual staff, according to the Office for National Statistics.
In the coming days, Cabinet Office Minister Pat McFadden will issue official instructions to Whitehall departments outlining the required cuts. The responsibility for implementing these reductions will fall on ministers and senior civil servants within each department.
Union leaders have warned that the cuts could result in a reduction of around 10% of the workforce. Dave Penman, head of the FDA Union, dismissed the notion that such large-scale cuts could be achieved simply by reducing HR and communications teams. He emphasized that while governments have the right to determine the size of the Civil Service, reductions of this magnitude would inevitably impact its ability to function effectively.
Mike Clancy, general secretary of the Prospect Union, echoed these concerns, warning that the cuts would have a direct effect on public services. He stressed that reducing staff numbers would not necessarily lead to a more efficient Civil Service and that the public would notice the impact.
These changes have been anticipated for some time. Earlier this month, McFadden told the BBC that "radical" reforms were on the horizon, while the Prime Minister has pledged to free civil servants from excessive bureaucracy.
The government's decision comes amid economic challenges, including disappointing growth figures and lower-than-expected tax revenues, which have increased the pressure to find savings.
Reeves has ruled out increasing taxes or expanding government budgets in her upcoming Spring Statement, citing strict fiscal rules set in the October Budget. Her key policies include avoiding borrowing for everyday public spending and ensuring national debt declines as a proportion of GDP by 2029-30.
Speaking to the BBC, she said: “We can’t simply tax and spend our way to higher living standards and improved public services. That’s not an option in today’s economic climate.”
The government's need to curb spending has been further intensified by rising borrowing costs, which reached £10.7 billion last month—significantly higher than the projected £6.5 billion.
Global security concerns have also influenced the decision-making process, with the government committed to increasing defence spending. To finance this, ministers have proposed cuts to international aid.
Additionally, the government aims to recover £5 billion annually by 2030 through proposed welfare reforms, which include stricter eligibility criteria for Personal Independence Payment (PIP) and the basic level of Universal Credit.
