LONDON
In a significant policy announcement today, the UK government unveiled a plan to freeze the expansion of the civil service and reduce its numbers to pre-pandemic levels, saving an estimated £1 billion ($1.21 billion) for the upcoming fiscal year.
During his speech to the Conservative Party conference, Chancellor Jeremy Hunt highlighted the exceptional efforts of civil servants during the COVID-19 pandemic, praising their dedication and emphasizing their role in saving countless lives.
However, with 66,000 more civil servants currently in the system compared to before the pandemic, the government is moving to ensure that new policies do not invariably translate into an increased workforce, he said.
“We have the best civil servants in the world – and they saved many lives in the pandemic by working night and day,” said Hunt. “But even after that pandemic is over, we still have 66,000 more civil servants than before. New policies should not always mean new people.”
He suggested that instead of expanding the state, the UK should focus on enhancing the efficiency of the state apparatus.
He contended that by consistently boosting public sector productivity by 0.5% annually, the UK can maintain government spending as a percentage of GDP at a stable level.
British Prime Minister Rishi Sunak and Chancellor Hunt expressed their ambition to transform the UK into the world’s next Silicon Valley, focusing on cultivating a thriving tech and innovation ecosystem.
The government aims to harness the nation’s potential and create a conducive environment for technological advancements and entrepreneurship.
‘Increased borrowing’
Addressing concerns raised by the opposition, Hunt emphasized the economic consequences of increased borrowing.
“Labour will increase borrowing, and that will increase debt. That means higher taxes, higher mortgages, and higher inflation for families. That’s not an economic policy. It’s an economic illusion,” he stated.
Hunt also cited recent revisions by the Office for National Statistics (ONS), which originally positioned the UK as the worst-performing large European economy since the pandemic.
However, the latest figures indicate that the UK is now one of the best-performing economies in the region, he said.
The government’s decision to curtail the expansion of the civil service while prioritizing economic growth and innovation has garnered mixed reactions, with some applauding the move as a necessary step towards fiscal responsibility, while others express concerns about potential impacts on public services and the workforce.
