Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      The next person to shop your store may not be a person at all

      AI shopping agents are rewriting the rules of online retail across North America

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Cohere's Aidan Gomez bets the house on 'sovereign AI' with Aleph Alpha merger valuing the group at $20bn

      Cohere CEO Aidan Gomez on stage discussing the Toronto AI lab's strategy

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Moonvalley's Naeem Talukdar is selling Hollywood the one thing rival AI video tools cannot: legal cover

      Moonvalley's Marey AI video model produces Hollywood-grade footage trained on licensed data

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Friday 30 May 2025 6:00 am  |  Updated:  Thursday 29 May 2025 4:35 pm

Civil service cull can save £5bn a year

By: Fonie Mitsopoulou

Political Reporter

Add as a preferred source on Google
The UK economy is suffering from sluggish growth in a warning sign for Rachel Reeves.
The UK economy is

Civil service cull can save £5bn a year, Policy Exchange says 

Cutting 80,000 civil service jobs could save the Treasury as much as £5bn pounds a year, a new report has found, as the government seeks to rein in spending in a bid to stick to its fiscal rules.

The research by Westminster think tank Policy Exchange has proposed the 80,000 mandarin cull in a bid to restore the civil service to the size it was prior to the pandemic.

This follows talks of mass layoffs in the government’s upcoming spending review, in addition to significant cuts which have already been made. 

The proposal  comes at a time when the Treasury is under pressure to fund the delivery of ambitious projects across various departments, while also facing higher inflation and unemployment rates.

But Policy Exchange identified that dismissals are only at 0.5 per cent across the civil service monolith, and recommended that comms staff are halved.  

Cutting down the number of mandarins occupying department halls could restore the UK’s public sector to pre-pandemic numbers, which could lead to considerable savings, Policy Exchange argued. 

“Significant pay restraint,” has seen median pay fall across the board. The report argued in favor of enabling staff to take home more pay in exchange for smaller pensions, and increasing salaries at the higher levels “which have become increasingly uncompetitive.” 

Read more

Reform UK tax cut pledge raises doubts 

Robert Jenrick speaking at a press conference, addressing current policy issues, wearing a suit and standing behind a podium

Civil service roles see significant turnover, as civil servants cannot be promoted within a role, and therefore must apply for an entirely new position to benefit from a higher salary. 

Policy Exchange argued that pay progression within a role should be introduced to ensure staffers stay put and rack up more experience.

Civil servant veterans speak 

Stephen Webb,former director at the Home Office and Cabinet Office, author of the report,pointed out the existence of plans to “make reductions of £1.5bn by the end of the Parliament,” but added that these could go “further” and “faster,” instead delivering £5bn in reductions across one or two years.

John Kingman, former second permanent secretary at the Treasury, said increases in policy staff in particular over the past few years “was not deliberate or thought-through.   It was simply chronic mismanagement.”

Kingman added that this is not a matter of politics, as parties across the ideological spectrum should value efficiency. “An over-resourced administrative machine inevitably generates ever more processes for itself and slows itself down.

“It is also extremely unlikely to create a working environment that can attract or retain the best talent,” Kingman said. 

The report found that on average, high-ranking civil servants have fewer years under their belts compared to their counterparts in the 1980s and 1990s.

Read more

The civil service needs a new Code

Dominic Cummings claims China has stolen vast amounts of secret UK material

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Politics

People & Organisations

  • Chancellor Rachel Reeves
  • Pat McFadden
  • Rachel Reeves
  • UK economy
  • UK Government

Trending Articles

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

  • Inflation expectations at record high in interest rates signal

  • London Tech Week sums up everything wrong with UK tech

  • UK economy falters as deeper damage to growth to come

  • KPMG report on AI found riddled with AI hallucinations

More from CityAM

  • ZayZoon, the Calgary fintech born on a fishing boat, posts 1,487% growth as earned wage access goes mainstream

    ZayZoon co-founder Tate Hackert built the Calgary fintech around earned wage access
  • The civil service needs a new Code

    Opinion
    Dominic Cummings claims China has stolen vast amounts of secret UK material
  • Manchester City now worth £7.5bn, says chairman Al Mubarak

    Sport Business
    Getty Images logo on a digital screen, representing stock photography service for news and media platforms
  • Botpress raises $25m as Quebec's Sylvain Perron pitches his startup as the 'infrastructure layer' for AI agents

    Botpress product UI: the Quebec startup pitches itself as the infrastructure layer for enterprise AI agents
  • FluidAI wins US FDA clearance for its surgical monitor as Waterloo's Youssef Helwa targets 100,000 operations

    FluidAI's Origin surgical monitor wins FDA clearance for use in US hospitals
  • Let’s help London’s £53.5bn airport investment opportunity take off

    Opinion
    Commercial airplane flying in clear blue sky, representing aviation news and current trends in the airline industry.
  • Starmer scrambles to make savings in bid to boost defence spending

    Politics
    Keir Starmer discussing UKs defense strategy with BAE Systems executives in a formal meeting setting
  • Boots eyes £7.5bn sale in blow to hopes of London IPO

    Retail
    Boots remains one of the group’s best performing business lines, with a London float suggested as recently as last year. (Photo by Oli Scarff/Getty Images)
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited