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Michigan Post > Blog > Politics > Voluntary exit schemes beneath manner throughout authorities departments forward of Rachel Reeves’ spending cuts
Politics

Voluntary exit schemes beneath manner throughout authorities departments forward of Rachel Reeves’ spending cuts

By Editorial Board Published March 25, 2025 5 Min Read
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Voluntary exit schemes beneath manner throughout authorities departments forward of Rachel Reeves’ spending cuts

A number of departments, together with the Division for Setting and Rural Affairs, the Overseas Workplace and Cupboard Workplace have all kickstarted the plans consistent with the federal government’s ambition to cut back paperwork and make the state extra environment friendly.

Others, together with the Division for Well being and Social Care and the Ministry of Housing and Native Authorities, have but to start out schemes however it’s anticipated they may, with the previous already set to lose employees following the shock abolition of NHS England that was introduced earlier this month.

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It comes as Rachel Reeves prepares to ship her spring assertion on Wednesday, when she is predicted to announce plans to chop civil service operating prices by 15% together with additional financial savings.

The transfer, confirmed by the chancellor on Sunday, may lead to 10,000 civil service jobs being axed after numbers ballooned throughout the pandemic.

Ms Reeves hopes the cuts, which she mentioned will probably be to “back office jobs” quite than frontline companies, will slash greater than £2bn from the finances.

Below the plans, civil service departments will first have to cut back administrative budgets by 10%, which is predicted to avoid wasting £1.5bn a 12 months by 2028-29. The next 12 months, the discount must be 15% – a saving of £2.2bn a 12 months.

The FDA union, which represents civil servants, has mentioned the federal government must be trustworthy in regards to the transfer and the “impact it will have on public services”.

FDA Common Secretary Dave Penman mentioned: “The idea that cuts of this scale can be delivered by cutting HR and comms teams is for the birds.

“This plan would require ministers to be trustworthy with the general public and their civil servants in regards to the impression it will have on public companies.”

Voluntary exit schemes differ from voluntary redundancy schemes in that they provide departments extra flexibility across the phrases supplied to departing employees.

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3:16

Spring assertion lookahead

“This includes implementing a new top-level departmental structure from April 2025 so that the department is effectively set up to support the government and the prime minister’s critical priorities under the plan for change.”

The spokesman added that the voluntary exit scheme, which was launched earlier this 12 months, will cut back the Cupboard Workplace’s headcount by about 400 roles however that it was not setting a particular goal.

They mentioned every software to the scheme can be examined on a case by case foundation to make sure “we retain critical skills and experience”.

“Creating more productive and agile state will refocus efforts to deliver security and renewal by kick-starting economic growth to put more money in working people’s pockets, rebuilding the NHS and strengthening our borders,” they mentioned.

“That is why we have set a target of reducing departmental administration costs by 15% over the next five years, which will save over £2bn a year by 2030.

“Financial savings from the 15% goal will be certain that departments are prioritising frontline supply, and focusing assets into the companies that matter to the general public.

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Beth Rigby and Ed Conway’s Spring Statement challenge

2:57

Beth and Ed’s spring assertion problem

“We are also supporting civil servants to be more productive and specialist, with a target for 10% of civil servants to be in specialist digital and data roles by the end of the decade.”

In the meantime, the Overseas Workplace’s voluntary exit scheme was launched on 14 November final 12 months. A supply mentioned the scheme was began to reply to the difficult fiscal setting and was a key strategic software in focusing on useful resource the place it was most wanted to advertise British pursuits abroad.

The cuts type a part of a wider authorities agenda to streamline the civil service and the dimensions of the British state, which Sir Keir Starmer criticised as “weaker than it has ever been”.

Every of the departments named on this article has been approached for remark.

TAGGED:aheadcutsdepartmentsexitgovernmentRachelReevesschemesspendingvoluntary
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