Starmer Announces £45bn Savings Plan Through AI and Digital Overhaul of Whitehall

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Prime Minister Sir Keir Starmer is poised to unveil a transformative plan aimed at saving £45 billion by digitalising government operations. The plan will also integrate artificial intelligence (AI) to replace certain civil service roles. In a major speech on Thursday, Starmer will argue that jobs should not exist if AI or automated systems can perform them more effectively. This signals potential job cuts for thousands of civil servants.

The prime minister will describe this initiative as the dawn of a “new era” in government efficiency. He will stress the importance of urgency and innovation in delivering better outcomes for working people. Although no exact figures have been provided for job reductions, his comments suggest a significant streamlining of the civil service.

Starmer is expected to emphasise the need for decisive action, stating: “The challenges facing working people and the instability of our times demand urgency. We must move faster and further to secure progress and renewal. Every decision, every regulation, and every pound spent must deliver tangible benefits for working people.”

He will highlight the potential for £45 billion in savings and productivity gains through the digitisation of public services. He calls AI a “golden opportunity” that the government is committed to harnessing. Technology Secretary Peter Kyle has reinforced this vision, noting the effective use of technology across the public sector could unlock these substantial savings.

Key elements of the plan include the establishment of dedicated AI and tech teams within government departments. These teams will drive efficiency and modernise public services. The government also aims to expand the number of civil servants in tech and digital roles. There is a target of one in 10 employees working in these areas within five years. Additionally, a new apprenticeship program, TechTrack, will introduce 2,000 tech apprentices into public sector roles by 2030.

Starmer’s speech will also address broader themes of national security and economic stability. He will frame them as interconnected priorities for his administration. He will argue that the state has grown “larger but weaker” and must be restructured to deliver security and renewal for the country.

As part of the reforms, the civil service will become leaner, with more roles relocated outside London. The government also plans to reduce the administrative costs of regulation by 25%, cutting red tape for businesses and improving efficiency.

This announcement builds on recent efforts to overhaul Whitehall and improve public sector productivity. The reforms are guided by the principle that no employee should spend time on tasks that AI or digital systems can perform more efficiently, quickly, and to the same high standard.

While the plan promises significant savings, it has sparked concerns about potential job losses and the impact on civil servants. The government, however, insists the reforms will create new opportunities. They aim to equip the UK with the skills needed to modernise its public services effectively.

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