Liz Truss today launched a ‘war on Whitehall waste’ as she pledged to slash £11billion per year including ending national pay deals for NHS staff, police and teachers and scrapping hundreds of jobs aimed at increasing diversity in the civil service.
The Foreign Secretary will also save £2billion by reducing public sector workers’ holiday allowance from 27 to 25 days and calculate pay based on where they live in the UK.
But a statement from her team revealed that up to £8.8billion of the savings would come from pay cuts for public sector workers living outside the south-east of England.
Her aides said this was the potential savings if the system were to be adopted for ‘all’ public sector workers, suggesting that teachers, nurses and police officers’ salaries were in the firing line.
Institute for Government programme director Alex Thomas told BBC Radio 4’s Today programme: ‘The whole Civil Service pay bill is only about £9 billion.
‘You’re not going to reduce the Civil Service pay bill to £200 million unless you pretty radically reshape the state.
‘I know she wants to be radical but possibly not quite that much, so it’s going to come from the wider public sector, it’s going to come from nurses and teachers and local authorities.’
Truss’s team hit back saying the changes, implemented by regional pay boards, will ensure pay accurately reflects where civil servants work and prevent local businesses being priced out of the labour market.
Liz Truss said: ‘As Prime Minister I will run a leaner, more efficient, more focused Whitehall that prioritises the things that really matter to people and is laser-focused on frontline services. There is too much bureaucracy and stale groupthink in Whitehall.’
Liz Truss today launched a ‘war on Whitehall waste’ as she pledged to slash £11billion per year
Her proposals met with a furious response from a major civil service union, which vowed to oppose her plans ‘every step of the way’.
Nicola Sturgeon? Just IGNORE her! Liz Truss brands the First Minister an ‘attention-seeker’
Leadership hopeful Ms Truss made the comments at the Conservative hustings in Exeter last night.
A member of the audience had asked: ‘What are you going to do to get Scotland on board? Because I’m sick to death hearing about Nicola Sturgeon trying to break up the Union.’
The chairman of the hustings, Whitehall editor of the Financial Times Sebastian Payne, added: ‘The bond of the United Kingdom has weakened over the past 12 years of the Conservative government, and if you look at Northern Ireland or Scotland, independence is very much a question again. What is your plan to reverse that?’
In response, Ms Truss, who described herself as ‘a child of the Union’ said: ‘We’re better together and I think the best thing to do with Nicola Sturgeon is to ignore her.
‘I’m sorry, she’s an attention seeker, that’s all she is. What we need to do is show the people of Scotland, Northern Ireland and Wales what we are delivering for them and make sure our policies are delivering for them right across the United Kingdom.’
Ms Truss said: ‘As prime minister I will run a leaner, more efficient, more focused Whitehall that prioritises the things that really matter to people and is laser-focused on frontline services.
‘There is too much bureaucracy and stale groupthink in Whitehall. If I make it into Downing Street, I will put an end to that and run a government that focuses relentlessly on delivering for the British public, and offer value to hard-working taxpayers.
‘I have shown in my time in Government that I’m prepared to take on the Whitehall orthodoxy and get things done.
‘The British people can trust me to deliver on my promises and tackle the cost of living immediately.’
The Truss campaign argued that because Civil Service pay is negotiated at a national level, no account is taken of the regional cost of living.
By introducing regional boards, civil servants’ pay can be adjusted in line with the actual areas where they work, saving the taxpayer billions but also ensuring private employers are not ‘crowded out’ by higher public sector wages.
The savings could be enhanced by moving more civil servants out of London.
Around £2 billion would be saved by bringing the average Civil Service leave entitlement down from 27 days to the 25 found in the manufacturing and private services sectors.
Scrapping Whitehall diversity officers would save around £12 million a year – Ms Truss’s campaign said there are at least 326 of the roles in government departments.
Backing the plans today, Jacob Rees-Mogg said the jobs were created by the ‘woke for the woke’.
Facility time, under which trade union representatives receive paid time off to focus on union work, would be banned – as would allowing the use of grants, offices and equipment – saving up to £137 million, the Truss campaign said.
The package of measures set out by Ms Truss are likely to meet fierce resistance from Civil Service unions if she tries to implement them from No 10.
A campaign source said: ‘Liz is a low-tax, small state Conservative with a distrust of big government. She will shake up Whitehall and take the radical steps required to tackle the waste and inefficiencies that lie at the heart of government.
‘She will make sure every single official knows their job about delivering the pledges made in the 2019 manifesto and the things that the public care about.’
Mark Serwotka, general secretary of the PCS union, said: ‘If Liz Truss is elected, and if she tries to go ahead with these proposals, she’ll face opposition every step of the way.
‘Civil servants are not a political tool to be used and abused for one person’s ambition; they are the hard-working people who keep the country running, day in day out, and they deserve respect.’
Mike Clancy, general secretary of Prospect union, said: ‘Liz Truss has spent the last few weeks trashing the record of her own Government. Judging by this vacuous attempt to garner headlines friendly to her selectorate, she plans more of the same economically illiterate and insulting ideological nonsense that this Government has been churning out in recent years.’
Deputy Labour leader Angela Rayner condemned Ms Truss’s plans, saying: ‘This wannabe prime minister is stuck in the past, fighting old battles, and promising a race to the bottom on public sector workers’ pay and rights.
‘Her ‘tailored’ pay plans would level down the pay of northerners, worsening the divide which already exists. This out-of-touch Government’s commitment to levelling up is dead.’