PCS responds to the chancellor's "iron fist" spending review comments

The civil service doesn’t need an iron fist. It needs someone who understands how it works, PCS has told chancellor Rachel Reeves in response to her remarks that she would have "an iron grip on the public finances and take an iron fist against waste"

As reported by Civil Service World, she has set out that departments are set to have their spending plans scrutinised by "challenge panels" of external experts – including bankers, academics and think tanks – as part of a bid to focus funding on priority areas, it has emerged.

Briefings from HM Treasury ahead of the formal launch of the 2025 spending review, which will fix departmental budgets for the 3 years from 2026-27 to 2028-29, have also warned that the chancellor will be seeking 5% efficiency savings over the period.

Chief secretary to the Treasury Darren Jones was due to write to secretaries of state today to effectively kick off the spending review. Widely-reported Treasury commentary said departments would be told outgoings that don't aid the new government's priorities must be cut.

PCS General Secretary Fran Heathcote said: “The civil service doesn’t need an iron fist. It needs someone who understands how it works.