Brown announces 84,000 civil service job cuts

More than 80,000 civil service jobs are to go under plans announced by the Chancellor, Gordon Brown, to save money and move resources to the front line of public services.

Brown set out the plans in his Spending Review on 12 July, which sets government spending for the next three years.

Cutting back office jobs

The job cuts follow a review of public sector efficiency by Sir Peter Gershon, a former businessman. He found that the government could save more than £20 billion a year by 2008 through better use of technology, sharing services and cutting administration.

Around 84,000 posts will go across departments, with the largest reductions at the Department for Work and Pensions and HM Revenue and Customs. A further 20,000 jobs are to be moved from back office roles to front-line services such as schools and hospitals.

Brown said the savings would be reinvested in public services. Thousands of civil servants will also move out of London and the South East to other parts of the country, including the Midlands, as part of a review led by Sir Michael Lyons.

Spending on services

The Spending Review sets out continued increases in spending on the NHS and education. Spending on schools and hospitals will rise faster than the economy as a whole.

Brown also announced extra money for defence, security and counter-terrorism, and for childcare.

Union anger

Public sector unions have reacted angrily. The Public and Commercial Services Union, which represents civil servants, said the cuts would damage services and warned of industrial action.

The union argues that many of the jobs being cut are those of staff who deal directly with the public, such as benefits and tax advisers.

The political battle

The announcement comes ahead of the next general election, expected next year. Labour wants to show that it can deliver better public services while controlling costs.

The Conservatives, led by Michael Howard, say the government has wasted money and that they would make even bigger savings. They have promised to cut bureaucracy and to spend the money saved on front-line services and tax cuts.

A strong economy

The British economy is growing steadily, with low unemployment and inflation. Brown has presided over a long period of stability since Labour came to power in 1997.

But critics warn that government borrowing is rising and that the public finances could come under pressure if growth slows.