PM pushes AI-driven reform in Whitehall, sparking fears of mass job cuts despite No. 10’s reassurances

AI is set to infiltrate Whitehall as Keir Starmer launches a sweeping reform to slash inefficiencies, drive automation, and cut costs—amid reports of thousands of civil service job losses.

The prime minister will announce that AI tech teams will be deployed across government departments to eliminate tasks that machines can do “better, faster, and to the same standard” as civil servants. Starmer argues that global instability necessitates an urgent overhaul of the way government operates.

The initiative follows leaks about “Project Chainsaw”, a Whitehall cost-cutting plan reportedly inspired by Elon Musk’s budget-slashing rhetoric. While Downing Street denies a “chainsaw” approach, officials confirmed that all departments must find 5% savings, intensifying fears of civil service redundancies.

As part of the reforms, 2,000 tech apprentices will be recruited to “turbocharge” AI integration, with a goal that 10% of civil servants will be in tech roles within five years. Additionally, Starmer pledges to cut business regulations by 25% and eliminate bureaucratic hurdles he says are “slowing down delivery.”

Starmer, who previously vowed to “mainline AI into the veins” of the UK, believes the reforms could add £47bn to the economy annually. Trials have already shown that AI can halve waiting times for public services, according to Technology Secretary Peter Kyle.

Despite No.10’s claims that the focus is on efficiency rather than job cuts, civil servants remain on edge. Critics warn that Starmer’s AI revolution could become a ruthless austerity drive in disguise, leaving thousands out of work.

The full details of Starmer’s AI-driven government shake-up will be unveiled on Thursday, as Whitehall braces for potentially its biggest transformation in decades.

THE GUARDIAN

Keir Starmer is set to announce a digital overhaul of government operations, aiming to replace civil servants with AI where tasks can be automated to the same standard. The PM claims the shift could save £45bn, alongside hiring 2,000 tech apprentices.

However, unions warn Starmer against scapegoating officials, with the FDA’s Dave Penman criticising the government’s vague “mantras” and lack of concrete details. Prospect’s Mike Clancy insists reforms must be in partnership with staff, not imposed.

Starmer also plans to cut quangos and slash regulation costs by 25%, arguing the state has become “bigger, but weaker.” The government is reportedly considering a significant civil service reduction, echoing radical US policies under Donald Trump.

Labour denies pursuing a “chainsaw” approach, despite concerns over job cuts and performance-based dismissals. Unions remain wary, demanding clarity on how AI-driven reforms will enhance, rather than undermine, public services.

FINANCIAL TIMES

Keir Starmer is set to reshape the state by merging or scrapping regulators, aiming to cut bureaucracy and drive AI-powered efficiencies. The PM has urged ministers to identify watchdogs for consolidation, though only one of 130 regulators has been earmarked for removal so far.

Starmer will unveil a new “TechTrack” apprenticeship scheme to bring 2,000 digital specialists into the civil service, with a goal of one in 10 officials working in digital roles by 2030. He insists reforms will empower, not purge, civil servants—despite Cabinet Office Minister Pat McFadden signalling the workforce “can become smaller.”

Downing Street denies an “Elon Musk-style” cost-cutting approach, yet unions remain sceptical as Starmer promises £45bn in AI-driven savings while warning against “checkers and blockers” slowing government action.