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Tuesday, Apr 01, 2025

Sue Gray Issues Caution on Civil Service Cuts in Maiden House of Lords Speech

Sue Gray Issues Caution on Civil Service Cuts in Maiden House of Lords Speech

Former chief of staff to Keir Starmer emphasizes the importance of civil servants amidst impending budget cuts.
In her inaugural address in the House of Lords, Sue Gray, the former chief of staff to Labour leader Keir Starmer, urged the government to exercise caution regarding proposed cuts to the civil service and to avoid derogatory language that devalues public servants.

Gray highlighted that civil servants play a crucial role in achieving government objectives and warned against the use of terms like "blobs" and "pen-pushers," as well as discussions of cuts using language associated with "axes" and "chainsaws."

The UK government has set a target to reduce administrative costs in the civil service by 15% by the year 2030, aiming for savings of £2.2 billion alongside anticipated job losses of approximately 10,000 positions.

Concurrently, a £350 million fund has been initiated to cover redundancy costs, while a £3.25 billion "transformation fund" has been established to facilitate public service reform, particularly through advancements in artificial intelligence and modern computing technology.

Experts have indicated that the transformation of the civil service may incur costs that exceed initial savings projections for several years.

A source within Whitehall indicated that the estimated savings from these cuts have yet to be clearly defined, suggesting that significant financial benefits may not materialize until the forecast period ends in 2028-29.

Concerns regarding the substantial investment in technology aimed at boosting productivity within the civil service have also been voiced.

A senior official in Whitehall described this as a "huge gamble," referencing the common delays and budget overruns associated with IT projects in government.

Projected spending in Whitehall is expected to increase by an average of 1.2% over the next five years; however, much of this additional funding will be allocated to the National Health Service and defense.

Unprotected departments may face annual cuts of about 0.8% commencing in 2026.

Alex Thomas, a program director at the Institute for Government, emphasized that enhancing the effectiveness of the state may require initial financial investment, which could lead to future savings.

He noted that the anticipated savings from the civil service reforms could range between £1.5 billion to £2 billion over the spending review period.

Gray's address followed her departure from Starmer’s administration last autumn, as part of a leadership transition that saw Labour campaign expert Morgan McSweeney appointed in her place.

Since receiving a peerage from Starmer in January, Gray's commentary in the House of Lords concentrated on her civil service career and the prospective trajectory of the civil service.

She referenced her early work in the Department for Social Security, where she supported employment initiatives, describing her colleagues as "truly heroic and committed people" who aided individuals facing significant hardships.

She conveyed a commitment to the civil service, asserting its vital role in driving economic growth and societal security in the UK, while stressing the need for thoughtful language regarding public servants.

Gray concluded by acknowledging the necessity for difficult decisions and expressed her hope for a progressive civil service, encouraging others to offer their support.
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