The spring budget may axe up to 50000 civil service jobs and take money out of government by 2030

The UK government, under Labour’s leadership, may be eyeing significant cuts to civil service jobs as part of its spring budget strategy. Up to 50,000 roles could be eliminated in an effort to slash government administration spending by £2 billion by 2030—five times the reduction previously proposed. According to Sir Keir Starmer, this efficiency drive is aimed at delivering more value for taxpayers without compromising key commitments such as NHS funding or the 13,000 additional neighbourhood police officers pledged.

Rachel Reeves, the shadow chancellor, has emphasised the need for cuts amidst declining economic forecasts. It is understood that her plan will focus on reducing the government’s £13 billion annual administration costs, three-quarters of which are absorbed by staffing costs. This would take civil service headcounts back to pre-pandemic levels, with ministers pledging to explore the use of artificial intelligence to streamline operations while maintaining service quality.

Whitehall insiders suggest these reductions will not be limited to standard office functions, such as HR and communications, but will reach deeper across departments, potentially jeopardising essential services. Critics have raised concerns about the potential impact of these cuts, with unions warning that slashing such a significant portion of staff could decrease service quality. Dave Penman, head of the FDA union, argued that the cuts are likely to affect core services given their scale, which represents approximately 10 per cent of the government’s total pay bill.

In contrast, the government is maintaining plans for increased investment in targeted areas, particularly artificial intelligence, to boost labour efficiency. Starmer described AI as a “gamechanger” for improving public services and creating savings that could be reinvested elsewhere. However, unions remain staunchly opposed, preparing to ramp up opposition to the cuts with possible strike actions, stating that these plans could mark a return to austerity and harm public reliance on vital services.

The cuts come in a challenging fiscal climate, where the Office for Budget Responsibility is set to halve its GDP growth predictions, pushing the state’s budget £5 billion into the red. Labour has committed to avoiding austerity but has insisted that tough choices on savings need to be made. Reeves is expected to announce details of these fiscal measures in her address on Wednesday, which will include a crackdown on tax avoidance and additional penalties for overdue payments to HMRC, as well as targeted infrastructure investments to stimulate growth.

Ministers are also reportedly evaluating other potential areas for expenditure reductions. Proposals under consideration include cutting £500 million in school funding, phasing out universal free meals for infants, and removing subsidy programmes for free tampons and sports activities in schools. Rail sector cuts, including job losses, are also on the agenda. While Bridget Phillipson, the education secretary, has championed such measures as necessary for fiscal prudence, unions and critics argue that these measures signal a return to austerity politics.

Despite assurances that flagship commitments will remain unaffected, public sector unions have expressed concerns about diminished public service effectiveness. They have branded the proposed cuts arbitrary and claimed they fail to account for the potential fallout of reduced government services. Yet, the government argues that smarter, efficiency-led spending can offset the cuts’ impact.

As Rachel Reeves prepares to deliver her spring statement against a backdrop of slower economic growth, Britain’s public sector workers and their representatives will be listening closely. The full extent of these cuts and their implications on the economy, public sector, and taxpayers will become clearer after Wednesday’s announcement.