Chancellor George Osborne is planning a 25 per cent staff cut at the Treasury as part of the Government’s public sector cull.
The Financial Times this morning reports that Osborne wants to see staff numbers cut from 1,350 to 1,000 by natural attrition over the next four years.
Osborne hopes to settle departmental budgets by the middle of September ahead of the Government’s comprehensive spending review, set for October 20, which will see most departments hit with cuts of between 25 per cent and 40 per cent.
The FT reports Osborne will look to shrink the Treasury’s financial services function on the belief that the crisis management phase of the banking crisis is over.
Treasury staff will also be asked to sit at smaller desks laid out closer together to squeeze more civil servants from across Whitehall into its building, reports the FT.