Osborne to cut Treasury staff ‘by a quarter’

by Peter Wozniak

The Chancellor is to set an example for all government departments by axeing staff in his own, according to media reports.

In preparation for the October spending review, Mr Osborne is allocating cuts to each government department, amid calls from individual ministers to spare specific spending commitments.

Of the 1,350 staff who are currently employed at the Treasury, 350 look set to lose their jobs over the course of this parliament.

Specific cuts include those to financial services and international development policy functions, the latter of which was set up by Gordon Brown.

The move comes as the spending review approaches completion, with Whitehall departments expected to find twenty-five to forty per cent savings as part of the government’s austerity drive to tackle the deficit.

There remains potential for serious conflict between ministers and the Chancellor, with Liam Fox fighting for the treasury funding of Trident and Ian Duncan Smith demanding resources for his welfare reforms, both of which have met opposition from Mr Osborne as at odds with the overall push to make savings.

Public sentiments about the cuts are also likely to alter once the grim details are fully known in October.