London Daily

Focus on the big picture.
Wednesday, Oct 07, 2026

UK Government Proposes Major Overhaul of State Institutions and Civil Service

UK Government Proposes Major Overhaul of State Institutions and Civil Service

Plans include a crackdown on quangos and significant job cuts within the civil service as part of a broader efficiency drive.
UK government officials are formulating a radical proposal for state reform that includes a crackdown on quangos and substantial job reductions in the civil service.

This comes as part of a wider efficiency strategy to optimize public spending, particularly among the arm's length bodies that collectively manage approximately £353 billion of public funds.

Among the notable proposals is a restructuring of NHS England, which may see entire teams disbanded to promote cost savings and eliminate duplication.

Reports suggest that similar measures could extend to various quangos across the governmental landscape.

Simultaneously, No 10 and the Treasury are reportedly reviewing suggestions from a think tank known as Labour Together, which is advocating for the initiative under the moniker 'project chainsaw.' This name is derived from a public demonstration by Elon Musk, pertaining to significant budget cuts during Donald Trump's administration.

During a recent cabinet meeting, Prime Minister Keir Starmer urged his cabinet members to minimize reliance on quangos and regulatory bodies, asserting that they should take more responsibility for the management of their respective departments.

He emphasized the urgency of further reforms to the state, criticizing the previous government's delegation of decision-making to other organisations.

Starmer is expected to elaborate on these proposals in an upcoming speech, where he is anticipated to reveal plans for eliminating a greater number of Whitehall jobs than previously forecasted, alongside reorganising over 300 quangos, including NHS England, which employs nearly 300,000 individuals.

There is notable speculation that Homes England, responsible for funding affordable housing, could be absorbed into the Ministry of Housing, thereby giving ministers greater authority to fulfill targets related to the construction of 1.5 million new homes during this parliamentary session.

Several other quangos might face mergers, be brought in-house, or be entirely disbanded, although concerns have arisen regarding Labour's own creation of numerous quangos in its initial months of governance.

Under the proposed restructuring, officials identified as underperforming may be incentivised to resign, while the remuneration for senior officials could be linked more directly to performance metrics.

This effort is part of an overarching efficiency approach, whereby ministers have already been tasked with reducing civil service positions by over 10,000, with additional redundancies likely.

Labour Together indicated ambitions to leverage a compelling approach seen in the libertarian policies of Argentinian President Javier Milei, while still adhering to a centre-left philosophy.

The initiative is expected to explore legally complex avenues for reducing civil service sizes due to inadequate performance, as well as potentially abolishing or consolidating government departments and addressing planning challenges, such as the expansion of Heathrow Airport.

A spokesperson for Starmer refrained from specifying the bodies mentioned by him but commented on the perceived ineffectiveness of the current state apparatus, suggesting it has become unresponsive.

The spokesperson did not address inquiries regarding the possibility of a significant reduction of quangos similar to those undertaken between 2010 and 2015 by the previous Conservative government.

The total number of non-departmental public bodies has seen a steady decline over the years, decreasing from about 700 in 2010 during the Cameron administration, to just over 300 currently.

The 1970s recorded a peak of nearly 2,000 such bodies.

Since the Labour election victory in July, several new public bodies have emerged, including GB Energy, Skills England, and the National Jobs and Careers Service, although many of these are the result of mergers of earlier entities.

The Institute for Government recently suggested that the Cabinet Office minister, Pat McFadden, may need to consider mandatory redundancy protocols within the civil service, contrasting with previous strategies that relied predominantly on voluntary redundancy or natural attrition.

Expert Alex Thomas from the same think tank noted that implementing compulsory redundancies could shift the operational culture within the civil service, as historically, voluntary measures and hiring freezes have sometimes stifled talent.

In a further move to streamline regulatory functions, the government announced plans to legislation removing the Payment Systems Regulator, which currently oversees financial operators like Mastercard, by integrating its responsibilities into the Financial Conduct Authority.

This decision follows feedback from businesses expressing frustration over engaging with multiple regulatory bodies.

Chancellor Rachel Reeves stated that the current regulatory environment has become excessively cumbersome, inhibiting innovation, investment, and growth.

In response to these challenges, measures are being enacted to alleviate the burden on businesses.

Starmer noted that previous administrations had often deferred critical decisions to regulators, leading to a proliferation of regulations that obstructed meaningful growth.
Newsletter

Related Articles

0:00
0:00
Close
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
EY Warns UK Fiscal Headroom Has Halved to £11 Billion Ahead of Autumn Budget
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
×