View more on these topics

Treasury to cut staff numbers by 25%

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.


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. More Osborne smoke and mirrors I suspect.

    Natural attrition is not a “cut” simply a natural reduction of head count. This has been the stated policy of every government for the past 30 years.

    If all the “cuts” turn out to be natural wastage there will not be much impact on the the overall costs as the pension and salary costs rise over the same period. If this is repeated across all the government departments it will be the tax payer (those that are left) who will end up paying the bill.

  2. So … the rumour IS true!!

    I had heard that when George Osborne first arrived at the Treasury, he found a scene of total chaos, the place was littered with files, statistical analyses, consultation documents, piled high on desks and cascading onto the floor.

    As he cried out in complete despair “How on earth can I ever get you lot to balance the books?”

    Someone at the back is said to have shouted out “Move the desks closer together?”

  3. Were George Osborne to pay a visit to the FSA, he’d very probably find much the same as he found at the Treasury ~ AND the people at the FSA are paid even more than those at the Treasury.

    But, though the FSA is manifestly a public sector body (, because it’s funded from the private sector, there seems to be little concern about just how much it costs the industry it fails to regulate fairly, proportionately, impartially and, of course, competently.

    We hope the CPMA may be forced to be better, but I wouldn’t bet on it. And if Adair Turner’s still around, there’ll certainly be no question of any desks being moved closer together.

  4. In what may seem like a surprise move by some, it seems that George Osborne has reinstated all the coffee machines that Gordon Brown had ordered be removed from the Treasury offices, and it has nothing to do with the desks being closer together creating more space.

    Apparently, a senior civil servant had explained to George Osborne that everyone in the Treasury had undergone the most rigourous training to make sure they always remembered that some figures should be put in the columns on the side of the room where the windows were, and all the other items on the side next to where the coffee machines were.

    And since the coffee machines had been removed…

    Well …. the rest, as they say, is history.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm