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.