24 October 2003
Civil service unions have voiced alarm at the 'extraordinary' pace of a Treasury review aimed at slashing billions of pounds off the government's running costs, fearing it may lead to job cuts across Whitehall.
The two main unions representing government staff reacted with dismay after the
top-level review of efficiency in the public services, headed by civil service heavyweight Peter Gershon, was launched on October 20.
The unions, who were apparently caught by surprise by the launch, have just a month to prepare their response before the consultation period closes on November 21.
Mark Serwotka, general secretary of Whitehall's largest union, the Public and Commercial Services union, told Public Finance that members were concerned that the efficiency drive had been launched to camouflage a programme of cuts.
The drive to cut the cost of delivering services coincides with official statistics showing that, just six months into the financial year, Chancellor Gordon Brown has already borrowed £22.5bn of the projected £27bn total debt for 2003/04.
'The timescale for this review is extraordinarily tight,' Serwotka said. 'Without wishing to prejudge the outcome, we are deeply concerned that the review will be a job-cutting exercise that could have a detrimental impact on service delivery.'
Jonathan Baume, general secretary of the FDA, which represents Whitehall's senior civil servants, expressed concerns that his organisation had still not been granted a meeting with ministers to discuss the implications of the review, despite repeated requests for one.
He warned that there would need to be extensive consultations if ministers were planning to cut posts or move staff. 'We are concerned that there haven't been any discussions with the unions so far,' Baume told PF.
'The government will have to appreciate that it cannot make major changes, including moving people, quickly. Anything that involves people takes time and needs time and there is a danger of rushing things.'
Gershon, who as head of the Office of Government Commerce has already slashed £1bn from central government's annual £13bn procurement bill, has been given a wide-ranging brief to look at every aspect of the delivery of services to find cost reductions.
A survey from economic forecaster the Ernst & Young Item Club, which uses the same economic model as the Treasury, this week predicted that government borrowing would soar to £36bn by the end of 2003/04.
Against this backdrop of deteriorating public finances, Gershon's review is being seen as an attempt to pump the maximum proportion of the government's public investment programme, due to reach £320bn per year by 2005/06, into key areas such as health and education.
He and his 20-strong team are looking for 'significant savings' in areas such as procurement, human resources, IT and tax collection.
It will also examine whether savings are possible by simplifying the demands on local institutions such as schools and hospitals, and by reducing the bureaucratic burden on frontline staff.
Brown has already warned his Cabinet colleagues that next year's Spending Review will be 'tough', meaning the promised service improvements will have to be wrung from existing budgets, foreshadowing tough times ahead for ministers in departments not seen as front-rank.
PFoct2003
