The Public and Commercial Services Union has voiced strong concerns about the potential consequences of these cuts, especially after 15 years of underfunding by the previous Conservative government
The Chancellor, Rachel Reeves, has unveiled plans to cut £2bn from government departments, a move that the Public and Commercial Services Union (PCS) warns will severely impact frontline services, including job centres, HMRC phone lines, and efforts to reduce the asylum backlog.
Reeves confirmed on Sunday that she aims to achieve a 15% reduction in administrative costs across Whitehall by the end of the decade, amounting to approximately £2bn annually. This initiative is expected to result in around 10,000 job losses within the civil service, though Reeves clarified that this figure is not a specific target.
As Reeves prepares to deliver her spring statement on Wednesday, she is under significant pressure to balance the government’s books in accordance with her fiscal rules. This necessity means that some departments are likely to face spending cuts to avoid further tax increases or higher borrowing levels.
The PCS has voiced strong concerns about the potential consequences of these cuts, especially after 15 years of underfunding by the previous Conservative government. Fran Heathcote, the general secretary of the PCS, highlighted the public’s dissatisfaction with current service levels, citing long wait times for HMRC phone lines, rushed jobseeker appointments, and delays in the criminal justice system.
Heathcote said: “You hear that every day from the public, that they wait too long on the phone when they try to make tax payments, jobseekers rushed through the system in just 10 minutes because there aren’t enough staff to see them, victims of crime waiting until 2027 to have their cases heard in the courts as well as the backlog in the asylum system which results in additional hotel costs.”
Heathcote further warned that the impact of these cuts would not only disadvantage civil service members but also the public who rely on these services. He cited past experiences under Gordon Brown’s administration, where cuts to backroom staff led to chaos.
Reeves defended her economic strategy on Sunday, emphasizing that her plan is focused on growth. The economy grew by a mere 0.1% in January, and the Office for Budget Responsibility (OBR) is believed to have downgraded its forecasts to 1% for the year. Reeves expressed dissatisfaction with the current economic numbers but acknowledged that reversing a decade of economic stagnation would take time.
She stated: “It’s not possible within just a few months to reverse more than a decade of economic stagnation, but we are making the changes necessary to get Britain building again, to bring money into the economy.”
Reeves also reiterated her commitment to fiscal discipline, ruling out further tax increases and indicating that cuts within central government would help her adhere to spending limits.
In preparation for the spring budget, the government announced an allocation of £4.8bn for roads and highways for the year 2025-26. Additionally, a new requirement was introduced for English councils to report on pothole repairs before accessing their full funds. The government allocated £1.6bn for pothole funding, with up to 25% withheld from local authorities that fail to report annually on their pothole repairs.
The spending review has already been overshadowed by discussions on where the cuts will fall. While overall spending is set to increase each year, with significant rises for defence and the NHS, other departments have been asked to model cuts of up to 11%.
Reeves emphasized the importance of maintaining security as a key theme of the spring statement. She acknowledged the global economic challenges but insisted that the UK needs to accelerate growth.
Reeves and Labour leader Keir Starmer are also facing potential rebellions over plans to reduce welfare costs by £5bn. There is significant discontent among backbenchers and unions regarding the proposed spending cuts.
In response to a grim forecast from the Joseph Rowntree Foundation predicting that all UK families would be worse off by 2030, with the poor bearing the brunt, Reeves disputed the findings. She expressed confidence that living standards would rise during the current parliament.
She said: “I reject that and the Office for Budget Responsibility will set out their forecast this week. Living standards in the last parliament were the worst ever on record. I’m confident that we will see living standards increase during the course of this parliament.” Reeves also expressed optimism about avoiding US tariffs from the Trump administration, stating her confidence in the UK’s trade negotiators’ ability to strike a deal.
The Chancellor faced additional scrutiny over accepting free tickets to a Sabrina Carpenter concert with a family member, a move that parallels the controversy over Starmer’s acceptance of “freebies” last year. Reeves defended her decision, citing security concerns that made general seating impractical. She said: “Look, I took those tickets to go with a member of my family. I thought that was the right thing to do from a security perspective.”
Reeves later clarified: “These weren’t tickets that you could pay for, so there wasn’t a price for those tickets. Obviously, I’ll declare the value of them but they weren’t tickets that you were able to buy.”
As the spring statement approaches, the government’s cost-cutting plans continue to spark debate and concern, with significant implications for public services and the economy.
