The Cabinet Office, which serves as the strategic centre of British government, is set to lose nearly a third of its workforce over the next two years. Officials were informed today that 2,100 jobs from the department’s 6,500 positions will be cut or transferred to other parts of government, marking the first significant move in Labour’s promised civil service reforms.
Pat McFadden, the Chancellor of the Duchy of Lancaster and one of Sir Keir Starmer’s most trusted ministers, oversees the department and is the minister responsible for civil service reform. Sources close to the minister say he is “leading by example” by implementing substantial cuts in his own department first.
Breaking Down the Numbers
Of the 2,100 positions being eliminated, approximately 1,200 will be lost through voluntary and “mutually-agreed” redundancies or through natural attrition as departing staff are not replaced. The remaining 900 roles will be transferred to other government departments to avoid duplication of work.
The Cabinet Office claims these changes, alongside other reforms, will generate savings of £110 million annually by 2028. This represents a significant step towards the government’s stated goal of reducing the costs of running government by 15% by the end of the decade.
The Role of the Cabinet Office
Understanding these cuts requires recognising the Cabinet Office’s unique position in government. Unlike departments with specific policy portfolios such as Health or Defence, the Cabinet Office supports the Prime Minister and coordinates work across other departments.
It has experienced remarkable growth since the 2016 Brexit referendum, approximately trebling in size – the largest proportional increase of any government department. This expansion was driven by the need to prepare for Brexit, manage new functions previously handled at EU level, and respond to the Covid-19 pandemic.
Overall, the civil service has grown from 384,000 employees in 2016 to more than 500,000 today. The current government now aims to reverse this trend, starting with what many see as a bloated centre.
A “Leaner and More Focused” Department
Cat Little, the Cabinet Office’s top civil servant, told staff during this morning’s announcement that she wants the department to become “more strategic, specialist, and smaller.” This vision aligns with the government’s broader agenda to target resources at frontline services.
A Cabinet Office source told journalists: “Leading by example, we are creating a leaner and more focused Cabinet Office that will drive work to reshape the state and deliver our Plan for Change. This government will target resources at frontline services – with more teachers in classrooms, extra hospital appointments and police back on the beat.”
This statement highlights the political balancing act the government is attempting – cutting administrative roles while promising to protect or enhance public-facing services.
Part of a Broader Reform Agenda
Today’s announcement comes weeks after the government revealed plans for what it described as “radical” reforms to the civil service. These include introducing performance-related pay for senior staff and implementing new rules whereby those failing to meet standards could face dismissal if they don’t improve within six months.
Notably, McFadden has thus far resisted publicly setting a target for overall civil service job reductions. However, the scale of cuts in his own department suggests the government may be planning more extensive reductions than previously indicated.
The civil service reforms aim to create a more efficient machinery of government, but also represent a significant cost-saving measure as the Labour administration grapples with public finances they describe as the worst since World War II.
Union Response and Concerns
Trade unions representing civil servants have responded with caution and concern to the announcement. Mike Clancy, general secretary of Prospect union, warned that “blunt cuts of this scale will make it harder to play that role and could impact on delivery across government.” The union is seeking assurances that there will be no compulsory redundancies.
Lucille Thirlby, assistant general secretary of the FDA union, drew a distinction between genuine reform and simple cost-cutting: “Civil servants are desperate for reform and refocusing the work of the Cabinet Office may be a good place to start. However – as we are seeing with the reorganisation of NHS England – there is a difference between reforming and cutting.”
Thirlby urged ministers to “be honest about what the government will stop doing as a result of these cuts,” highlighting the central question of whether service delivery will be affected despite government promises to the contrary.
The Challenge of Delivering More with Less
The government faces a significant challenge in delivering on its twin promises of improved public services and reduced administrative costs. Labour came to power pledging to fix public services while maintaining fiscal discipline, creating tension between spending priorities and deficit reduction.
The Cabinet Office cuts represent a test case for whether the government can truly increase efficiency or whether reduced capacity will ultimately affect its ability to coordinate and implement policy effectively across government departments.
For civil servants, uncertainty looms as they wait to see whether similar cuts will be announced in other departments. The government’s approach to the Cabinet Office may provide a template for wider reform.
Looking Ahead: Implementation and Impact
The Cabinet Office job reductions will take place over two years, providing some time for planning and adjustment. However, questions remain about how these cuts will affect the department’s ability to fulfil its core functions of supporting the Prime Minister and coordinating cross-government work.
Critics argue that cutting so deeply at the centre of government could undermine the very reforms the administration hopes to implement. Supporters counter that streamlining is necessary after years of expansion that has not delivered proportionate improvements in government effectiveness.
What seems certain is that these cuts mark just the beginning of Labour’s civil service reform agenda. As Pat McFadden leads by example in his own department, other ministers will likely face pressure to identify similar savings in their areas of responsibility.
For the public, the true test will be whether the promised redirection of resources to frontline services materialises, and whether a smaller civil service can deliver the improvements in public services that formed the cornerstone of Labour’s election campaign.