Sir Keir Starmer has emphasized the need for greater efficiency in government, advocating for the use of artificial intelligence and technology ahead of the Spring Statement.
Chancellor Rachel Reeves has confirmed that civil service departments will be required to cut 15% from their budgets, a move that has sparked concern among Labour MPs over the scale of reductions. The chancellor is set to outline these cuts in her statement on Wednesday, following the government’s recent overhaul of the benefits system, which aims to save £5 billion annually by 2030.
Addressing questions on potential cuts to unprotected departments such as the Ministry of Justice, Sir Keir stated that the government was reviewing spending across various sectors. He reassured that last year’s record investments, particularly in the NHS, would remain intact.
“We’re asking businesses to embrace AI and technology to improve efficiency, and the government should be held to the same standard,” he said. “There’s no reason why we shouldn’t be more efficient, and we are looking at ways to achieve that.”
When asked about possible changes to fiscal rules, the prime minister dismissed the idea, citing the need to stabilize the economy. He pointed to shifting global conditions and rising international instability as key factors affecting domestic financial decisions.
Reeves’ fiscal policies focus on ensuring that government expenses are covered by tax revenues rather than borrowing, with a goal to reduce debt as a share of national income by 2029/30.
Meanwhile, Shadow Business Secretary Andrew Griffith attributed slow economic growth to the chancellor’s policy decisions, arguing that earlier action on welfare reform could have prevented the need for such cuts.
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