Rachel Reeves, the chancellor, has announced plans to cut £2billion from government departments, which could affect frontline services such as jobcentres, HMRC helplines, and efforts to reduce the asylum backlog. The chancellor confirmed on Sunday that these cuts will amount to a 15% reduction in admin costs across Whitehall by the end of the decade, potentially leading to the loss of around 10,000 jobs in the civil service.

Reeves is under pressure to balance the country’s finances and is considering spending cuts as an alternative to increasing taxes or borrowing. However, the Public and Commercial Services Union (PCS) warns that these cuts, following 15 years of underfunding by the Conservative government, will negatively impact public services. The union highlights issues like lengthy wait times on phone lines for tax payments, rushed job seekers due to insufficient staff, delayed court cases, and the current asylum backlog.

Fran Heathcote, the general secretary of PCS, criticizes the government’s approach to cuts, arguing that “you can’t cut your way to growth.” Reeves defended her economic plans, emphasizing her focus on growth, despite current economic challenges.

The chancellor’s spring statement, due on Wednesday, is expected to address where the spending cuts will occur. Reeves insists on adhering to her fiscal rules, ruling out further tax increases but confirming cuts within central government.

In addition to the potential government cuts, Reeves and Labour leader Keir Starmer face criticism for proposed welfare cost reductions. The Joseph Rowntree Foundation has forecasted that all UK families will be worse off by 2030, with the poor most affected. However, Reeves disputes these findings, expressing confidence in the Office for Budget Responsibility’s upcoming forecast, which she believes will show an increase in living standards.

Reeves remains optimistic about avoiding tariffs from the US and showed a positive view towards the negotiation skills of the UK’s trade negotiators. She also addressed criticism over accepting free concert tickets, justifying her actions due to security concerns.

Source: https://www.theguardian.com/politics/2025/mar/23/labour-plan-whitehall-cuts-rachel-reeves-frontline-services-pcs-union