For reasons which escape me, cutting the number of
civil servants generally seems to be a popular policy. And there is no doubt
that the simplistic impact of reducing the number of civil servants would be a
reduction in the bill for salaries – even Reform Ltd can do simple
sums like multiplying the number of people sacked by the salary they are
being paid and calculating a ‘saving’. What they haven’t told us, though, is
which civil servants are being sacked, and what they are actually doing at
present. If they are doing nothing at all, and if they all find alternative jobs
rapidly, then the projected savings are not unreasonable. Those are big ifs,
though.
The reality is more complex: some of those 68,000
will join the ranks of the unemployed; that might cost less than paying them a
salary, but it’s not a zero cost. Others will take their pension early,
bringing forward government expenditure which might not have been expected to
kick in for a few more years. Based on past experience, it would not be at all
surprising if some ended up providing consultancy services to the civil service,
to compensate for the lost expertise which had just been paid to walk out of
the door, which would probably cost more than their salaries.
The biggest cost would be in undertaking the
activities which they are currently performing. Assuming that at least some of
them are actually performing a useful function, that function would still need
to be performed. Maybe it would be contracted out to the private sector,
enabling Farage’s mates to turn a profit. It would show as a cut in the salaries
bill, but with a consequent increase in the bill for external service
providers. Maybe the government would no longer provide the relevant services
at all, leaving those who use them to pay private contractors directly – that would
cut the government’s bills, but the end users would be worse off; instead of
sharing the costs of those services across all citizens, they’d fall onto a
smaller number of shoulders.
The point is that only on a very narrow view do wholesale
arbitrary civil service cuts result in savings, and those savings are restricted
to a single budget line. On any holistic view, those savings will be at least
partly offset by increased costs elsewhere – how much and by whom they are paid
is as unclear as it is indisputable. The approach seems to owe much to Elon
Musk’s DOGE in the US, but the more we know about that, the more likely it is
that the savings are largely imaginary, and that the
exercise may even have increased costs. Cutting the number of civil
servants may prove to be a popular policy with many (particularly those seduced
by the false notion that only private sector activity creates wealth whilst
public sector activity consumes that wealth) up to the point at which it
impacts on themselves or their families. And it will. It is utterly dishonest,
but then that’s only what most of us would expect from Farageists.
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