Finance minister to cut civil service costs to save $3.5 billion a year

British Treasury Secretary Reeves plans to cut the cost of government officials by more than 2 billion pounds a year by 2029-2030.

According to Reuters, a British Treasury source said that Reeves may announce the plan when he announces his semi-annual budget update speech next Wednesday (March 26) to bring Britain's finances back to reasonable. She will also present new economic and public finance forecasts from Britain's fiscal watchdog.

According to a cabinet source, Reeves expects to cut the civil service's administrative budget by 10% by 2028-2029 and a further 15% by 2029-2030. £2 billion a year in savings by the end of the parliament.

The source said: "To implement our change programme, we will reshape the country so that it is fit for the future. We can't be stuck in a rut. By cutting administrative costs, we can direct resources to frontline services - there will be more teachers in classrooms, more appointment places in hospitals, and police can be back on the beat."

The cuts are likely to hit thousands of government jobs, including back-office jobs such as communications and policy, human resources and financial procurement management, but frontline services such as border forces and prisons are likely to remain unaffected. The Cabinet Office will inform the departments next week.