London Daily

Focus on the big picture.
Thursday, Sep 18, 2025

UK Civil Service Budget Cuts Target £2 Billion Annual Savings by 2030

UK Civil Service Budget Cuts Target £2 Billion Annual Savings by 2030

The Government announces a structured reduction in administrative budgets, prompting concerns over the impact on public services and civil service operations.
The UK civil service is set to reduce its administrative budgets by over £2 billion annually by the end of the decade, part of a broader spending review initiated by the Government.

The Cabinet Office has announced plans to instruct various departments to implement a 15% cut to their administrative budgets, anticipated to generate savings of £2.2 billion per year by the fiscal year ending in March 2030.

The first phase of the budget cuts will require departments to achieve a 10% reduction by the fiscal year ending in March 2029, which is projected to save approximately £1.5 billion annually.

This figure notably represents nearly 10% of the total salary expenditure for the entire civil service.

Administrative budgets typically encompass costs related to human resources, policy advice, and office management, but exclude frontline services essential for public welfare.

Instructions for these budgetary reductions are expected to be communicated to departments via a forthcoming letter from Pat McFadden, Chancellor of the Duchy of Lancaster.

A Cabinet Office spokesperson indicated that the aim of the budget cuts is to enable a restructuring of public services to align with contemporary needs, stating, "To deliver our Plan for Change we will reshape the state so it is fit for the future.

We cannot stick to business as usual."

The announcement has been met with caution from civil service unions, particularly from the FDA (FDA Union), where general secretary Dave Penman expressed concerns regarding the potential consequences of such substantial cuts.

He indicated that while the move away from strict headcount reductions is welcomed, the separation of back-office functions from frontline services is considered "artificial." He emphasized that most departments will experience staffing reductions impacting their operational capability.

Similarly, Mike Clancy, general secretary of the Prospect union, remarked that a "cheaper civil service is not the same as a better civil service," urging for thoughtful evaluations of civil service roles rather than arbitrary budget cuts aimed solely at reducing expenditure.

The Prospect union has historically raised caution against governmental targets that prioritize financial savings over effective civil service reforms.

The context of these budget cuts arrives against a backdrop of economic pressures, with Chancellor Rachel Reeves poised to announce additional spending cuts in upcoming statements.

Her plans are largely influenced by disappointing economic growth statistics and unforeseen increases in government borrowing.

Earlier this month, it was reported that public sector net borrowing reached £10.7 billion in February, exceeding the Office for Budget Responsibility's forecasts by £4.2 billion.

In a recent interview, Reeves maintained her position against "tax and spend" policies, advocating for a financial approach that scrutinizes every expenditure while addressing the country’s public service needs.

As these budgetary changes unfold, stakeholders within the civil service and broader public sector are likely to experience significant shifts in their operational mandates and capacities.
Newsletter

Related Articles

0:00
0:00
Close
Macron and his wife to provide 'scientific photographic evidence' that she is a real woman
US Tech Giants Pledge Billions to UK AI Infrastructure Following Starmer's Call
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
DeepMind and OpenAI Achieve Gold at ‘Coding Olympics’ in AI Milestone
SEC Allows Public Companies to Block Investors from Class-Action Lawsuits
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Federal Reserve Cuts Rates by Quarter Point and Signals More to Come
Effective and Impressive Generation Z Protest: Images from the Riots in Nepal
European manufacturers against ban on polluting cars: "The industry may collapse"
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Trump: Cancel quarterly company reports and settle for reporting once every six months
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
US Launches New Pilot Program to Accelerate eVTOL Air Taxi Deployment
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Hong Kong Industry Group Calls for HK$20 Billion Support Fund to Ease Property Market Stress
Joe Biden’s Post-Presidency Speaking Fees Face Weak Demand amid Corporate Reluctance
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
×