Connect with us

Published

on

The chancellor has said she is “confident” 10,000 civil service jobs can be axed after numbers ballooned during the pandemic – as she seeks to cut more than £2bn from the budget.

Rachel Reeves has told Sky News she is certain the government can deliver those cuts to “back office jobs” to free up resources for “front line” services.

She is expected to unveil a raft of spending cuts during the spring statement on Wednesday – and has reportedly ruled out tax rises.

The FDA union has said the government needs to be honest about the move, first reported by The Telegraph, and the “impact it will have on public services”.

Please use Chrome browser for a more accessible video player

What to expect from the spring statement

Reeves concedes cuts won’t be pain-free

Appearing on Sky’s Sunday Morning With Trevor Phillips programme, the chancellor was pushed repeatedly for a precise number of civil service jobs she wants to cut, and she eventually replied: “I’m confident that we can reduce civil service numbers by 10,000.

“And during COVID, there were big increases in the number of people that were working in the civil service.

More on Rachel Reeves

“That was the right thing to do to respond to those challenges. But it’s not right that we just keep those numbers there forever.”

Ms Reeves said there are “a number” of civil service jobs that can be done by technology, while “efficiencies” can also be made by getting rid of quangos.

Asked what roles she expects to no longer need, she said: “It will be up for every department to set out those plans.

“But I would rather have people working on the front line in our schools and our hospitals and our police, rather than back office jobs.”

She said cuts will be made to things like travel budgets, spending on consultants, and also on communications.

She conceded that the cuts will not be pain free, but says she would rather spend money to “deliver better public services”.

Rachel Reeves attending the Make UK Conference at the QEII Centre.
Pic: PA
Image:
Chancellor Rachel Reeves will give the spring statement next week. Pic: PA

Civil service departments will first have to reduce administrative budgets by 10%, which is expected to save £1.5bn a year by 2028-29.

The following year, the reduction should be 15%, the Cabinet Office will say – a saving of £2.2bn a year.

The chancellor has also said she won’t be putting up taxes on Wednesday, telling The Sun On Sunday: “This is not a budget. We’re not going to be doing tax raising.”

Ms Reeves added: “We did have to put up some taxes on businesses and the wealthiest in the country in the budget [in the autumn].

“We will not be doing that in the spring statement next week.”

The chancellor has repeatedly insisted she won’t drop her fiscal rules which preclude borrowing to fund day-to-day spending.

Civil service departments will receive instructions from the Chancellor of the Duchy of Lancaster Pat McFadden in the coming week, The Telegraph reported.

“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,” a Cabinet Office source said.

“By cutting administrative costs we can target resources at frontline services – with more teachers in classrooms, extra hospital appointments and police back on the beat.”

The move comes after the government last week revealed welfare cuts it believes will save £5bn a year by the end of the decade.

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

FDA general secretary Dave Penman said the union welcomed a move away from “crude headcount targets” but that the distinction between the back office and frontline is “artificial”.

“Elected governments are free to decide the size of the civil service they want, but cuts of this scale and speed will inevitably have an impact on what the civil service will be able to deliver for ministers and the country…

“The budgets being cut will, for many departments, involve the majority of their staff and the £1.5bn savings mentioned equates to nearly 10% of the salary bill for the entire civil service.”

Ministers need to set out what areas of work they are prepared to stop as part of spending plans, he said.

“The idea that cuts of this scale can be delivered by cutting HR and comms teams is for the birds. This plan will require ministers to be honest with the public and their civil servants about the impact this will have on public services.”

Read more:
Analysis: UK growth forecast set for major downgrade

What could be announced in the spring statement?
The spring statement – what you need to know

Mike Clancy, general secretary of the Prospect union, warned that “a cheaper civil service is not the same as a better civil service”.

“Prospect has consistently warned government against adopting arbitrary targets for civil service headcount cuts which are more about saving money than about genuine civil service reform.

“The government say they will not fall into this trap again. But this will require a proper assessment of what the civil service will and won’t do in future.”

Continue Reading

Politics

Chancellor Rachel Reeves says she is ‘totally’ up for the job of chancellor in first comments since tearful PMQs

Published

on

By

Chancellor Rachel Reeves says she is 'totally' up for the job of chancellor in first comments since tearful PMQs

The chancellor has said she was having a “tough day” yesterday in her first public comments since appearing tearful at Prime Minister’s Questions – but insisted she is “totally” up for the job.

Rachel Reeves told broadcasters: “Clearly I was upset yesterday and everyone could see that. It was a personal issue and I’m not going to go into the details of that.

“My job as chancellor at 12 o’clock on a Wednesday is to be at PMQs next to the prime minister, supporting the government, and that’s what I tried to do.

“I guess the thing that maybe is a bit different between my job and many of your viewers’ is that when I’m having a tough day it’s on the telly and most people don’t have to deal with that.”

Politics latest: PM sets out 10-year NHS plan

She declined to give a reason behind the tears, saying “it was a personal issue” and “it wouldn’t be right” to divulge it.

“People saw I was upset, but that was yesterday. Today’s a new day and I’m just cracking on with the job,” she added.

More on Rachel Reeves

Ms Reeves also said she is “totally” up for the job of chancellor, saying: “This is the job that I’ve always wanted to do. I’m proud of what I’ve delivered as chancellor.”

Pic: PA
Image:
Reeves was seen wiping away tears during PMQs. Pic: PA

Asked if she was surprised that Sir Keir Starmer did not back her more strongly during PMQs, she reiterated that she and the prime minister are a “team”, saying: “We fought the election together, we changed the Labour Party together so that we could be in the position to return to power, and over the past year, we’ve worked in lockstep together.”

PM: ‘I was last to appreciate’ that Reeves was crying

The chancellor’s comments come after the prime minister told Sky News’ political editor Beth Rigby that he “didn’t appreciate” that she was crying behind him at Prime Minister’s Questions yesterday because the weekly sessions are “pretty wild”, which is why he did not offer her any support while in the chamber.

He added: “It wasn’t just yesterday – no prime minister ever has had side conversations during PMQs. It does happen in other debates when there’s a bit more time, but in PMQs, it is bang, bang, bang. That’s what it was yesterday.

“And therefore, I was probably the last to appreciate anything else going on in the chamber, and that’s just a straightforward human explanation, common sense explanation.”

Please use Chrome browser for a more accessible video player

Starmer explains to Beth Rigby his reaction to Reeves crying in PMQs

During PMQs, Tory leader Kemi Badenoch branded the chancellor the “human shield” for the prime minister’s “incompetence” just hours after he was forced to perform a humiliating U-turn over his controversial welfare bill, leaving a “black hole” in the public finances.

The prime minister’s watered-down Universal Credit and Personal Independent Payment Bill was backed by a majority of 75 in a tense vote on Tuesday evening – but a total of 49 Labour MPs voted against the bill, which was the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s lone parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

Reeves looks transformed – but this has been a disastrous week for the PM

It is a Rachel Reeves transformed that appears in front of the cameras today, nearly 24 hours since one of the most extraordinary PMQs.

Was there a hint of nervousness as she started, aware of the world watching for any signs of human emotion? Was there a touch of feeling in her face as the crowds applauded her?

People will speculate. But Ms Reeves has got through her first public appearance, and can now, she hopes, move on.

The prime minister embraced her as he walked on stage, the health secretary talked her up: “Thanks to her leadership, we have seen wages rising faster than the cost of living.”

A show of solidarity at the top of government, a prime minister and chancellor trying to get on with business.

But be in no doubt today’s speech on a 10-year-plan for the NHS has been overshadowed. Not just by a chancellor in tears, but what that image represents.

A PM who, however assured he appeared today, has marked his first year this week, as Sky News’ political editor Beth Rigby put to him, with a “self-inflicted shambles”.

She asked: “How have you got this so wrong? How can you rebuild trust? Are you just in denial?”

They are questions Starmer will be grappling with as he tries to move past a disastrous week.

Ms Reeves has borne a lot of the criticism over the handling of the vote, with some MPs believing that her strict approach to fiscal rules has meant she has approached the ballooning welfare bill from the standpoint of trying to make savings, rather than getting people into work.

Ms Badenoch also said the chancellor looked “absolutely miserable”, and questioned whether she would remain in post until the next election.

Sir Keir did not explicitly say that she will, and Ms Badenoch interjected to say: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”

Downing Street scrambled to make clear to journalists that Ms Reeves was “going nowhere”, and the prime minister has since stated publicly that she will remain as chancellor “for many years to come”.

Continue Reading

Politics

Bitcoin Suisse legal chief flags gaps in EU, Swiss stablecoin rules

Published

on

By

Bitcoin Suisse legal chief flags gaps in EU, Swiss stablecoin rules

Bitcoin Suisse legal chief flags gaps in EU, Swiss stablecoin rules

Peter Märkl, general counsel at Bitcoin Suisse, criticized both EU and Swiss stablecoin regulations as inadequate and burdensome.

Continue Reading

Politics

Tether narrows USDC’s lead on BitPay payment transactions in 2025

Published

on

By

Tether narrows USDC’s lead on BitPay payment transactions in 2025

Tether narrows USDC’s lead on BitPay payment transactions in 2025

BitPay’s USDC stablecoin transactions accounted for almost double that of USDT in 2024, but the trend has shifted in favor of Tether this year.

Continue Reading

Trending