The UK civil service faces budget cuts exceeding £2 billion annually by 2030, as disclosed by sources to The Guardian.
The Cabinet Office is set to instruct departments to reduce administrative expenditures by 15%, aiming to save £2.2 billion each year by the end of the decade.
Initially, departments will trim budgets by 10% by 2028-29, targeting savings of £1.5 billion annually.
According to the FDA union’s head, these cuts nearly match 10% of the civil service’s salary expenses.
Administrative budgets, which cover HR, policy guidance, and office management—but not frontline services—are the focus of these reductions.
Departments are poised to receive formal directives through a letter from Pat McFadden, the Chancellor of the Duchy of Lancaster, expectedly within the next week.
Dave Penman, General Secretary of the FDA, expressed relief over the shift from blunt headcount reduction targets; however, he remarked that the distinction between administrative and frontline roles is largely superficial.
He emphasized the inevitable effects of such extensive and rapid cuts on the civil service’s capacity to fulfil ministerial and national requirements. Penman has called on ministers to clearly define which functions will be discontinued under the new financial strategy.
Mike Clancy, General Secretary of the Prospect union, cautioned that cost reductions might lead to a decline in service quality, opposing arbitrary cuts aimed more at financial savings than true reform.
He stressed the need for a thorough evaluation of the civil service’s future roles and responsibilities.
A Cabinet Office spokesperson highlighted that the restructuring aims to optimise efficiency, directing resources towards frontline services, enhancing educational, healthcare, and policing provisions.
This announcement comes ahead of Chancellor Rachel Reeves’s expected declaration of budget reductions in her upcoming spring statement, following unsatisfactory economic growth and increased borrowing.
Last month, the government reallocated funds from the aid budget to boost defence spending.
