Capping HMRC headcount will harm service levels

There will be an immediate cap on civil servant headcount across Whitehall which could save up to £1bn the chancellor announced at the Conservative party conference.

The civil service workforce has grown year on year since 2016 with headcount as of June 2023 around 488 000. While this has enabled an effective response to the challenges of the Covid-19 pandemic further unabated growth would not be fair to taxpayers or promote the efficiency they expect the chancellor said.

The cap - which will be in place for the duration of the current spending review period - does not equate to a recruitment freeze and current recruitment campaigns will continue.

After the current spending review period government departments will be asked to produce plans on driving down headcount over the long-term to pre-pandemic levels as part of the public sector productivity programme being carried out by the...