In the upcoming spending review, the government plans to instruct the civil service to cut over £2 billion annually from its budget by the end of the decade, with union officials warning that this could lead to significant job losses.

The Cabinet Office is set to order departments to reduce their administrative budgets by 15%, which is expected to save £2.2 billion annually by 2029-30.

Initially, departments will be asked to cut their budgets by 10% by 2028-29, aiming to save £1.5 billion annually, which is close to 10% of the civil service’s salary costs.

Administrative budgets encompass areas such as HR, policy advice, and office management, excluding frontline services.

Departments are expected to receive instructions via a letter from Pat McFadden, the chancellor of the duchy of Lancaster, within the coming week.

FDA general secretary Dave Penman stated that while the union supports moving away from “crude headcount targets,” the differentiation between back office and frontline work is “artificial.”

He added, “Elected governments are free to decide on the size of the civil service they want, but cuts of this magnitude and speed will undoubtedly affect the civil service’s ability to deliver for ministers and the country.”

Penman urged ministers to clarify which areas of work they are prepared to cease as part of their spending plans.

Mike Clancy, general secretary of the Prospect union, warned that a cheaper civil service does not necessarily equate to a better one.

“Prospect has repeatedly cautioned the government against adopting arbitrary targets for civil service headcount cuts, which prioritize cost-cutting over genuine civil service reform.

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

A source from the Cabinet Office stated, “To deliver our Plan for Change, we will reshape the state to fit for the future. We cannot continue business as usual.”

“By reducing administrative costs, we can focus resources on frontline services – resulting in more teachers in classrooms, additional hospital appointments, and police officers back on patrol.”

On Wednesday, Chancellor Rachel Reeves will propose spending cuts in her spring statement, aiming to balance the budget following disappointing growth figures and higher than anticipated borrowing.

More funds have been allocated to defense by decreasing the aid budget, as announced last month.