Rachel Reeves is facing a war with unions amid claims as many as 50,000 public sector workers could lose their jobs under plans to cut Civil Service running costs by 15%. The Chancellor said Labour was looking to slim down the sector, which she said had swelled during the Covid-19 pandemic, by slashing its “back office functions, the administrative and bureaucracy functions” by the end of this parliament.
The size of Britain’s Civil Service fell by 19% between 2010 and 2016 to a workforce of around 384,230. But it began ballooning following the Brexit referendum, as policy specialists were drafted in to prepare for the UK exiting the EU. The number of full time employees reached a high of 515,085 in September 2024, according to the Institute for Government.
Transport Secretary Heidi Alexander on Monday denied that the Government was “setting a target” for job cuts, but insisted the Civil Service must be “leaner” and more “agile”. Ms Reeves has denied the plans are a return to the austerity overseen by Conservative predecessors, pointing to money poured into capital spending and the NHS.
However, the leader of the biggest Civil Service union said any cuts will hit frontline services after years of underfunding. Public and Commercial Services union general secretary Fran Heathcote said: “The impact of making cuts will not only disadvantage our members but the public we serve and the services they rely on.” FDA general secretary Dave Penman told ITV the cuts could lead to up to 50,000 staff being let go.
It comes after a backlash, including in the party’s own ranks, to cuts to welfare spending and a decision to slash the aid budget to fund a boost to defence spending, and ahead of the Chancellor’s spring statement on Wednesday. The Cabinet Office will tell departments to cut their administrative budgets by 15%, which is expected to save £2.2 billion a year by 2029-30.
