London Daily

Focus on the big picture.
Wednesday, Nov 04, 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
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
×