{"id":288587,"date":"2025-06-11T19:08:47","date_gmt":"2025-06-11T19:08:47","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/rachel-reeves-banks-on-ai-to-help-eke-out-uk-government-savings\/"},"modified":"2025-06-11T19:08:47","modified_gmt":"2025-06-11T19:08:47","slug":"rachel-reeves-banks-on-ai-to-help-eke-out-uk-government-savings","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=288587","title":{"rendered":"Rachel Reeves banks on AI to help eke out UK government savings"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=0e9ad2b6-de19-4164-ac7b-bb8d0a33ca2c\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Rachel Reeves is banking on big productivity gains from the adoption of AI across the UK government to help deliver efficiency savings totalling \u00a314bn by the end of the parliament.\u00a0<\/p>\n<p>The chancellor said she had been \u201crelentless\u201d in driving out inefficiencies in order to put money back into public services in the <a href=\"https:\/\/www.ft.com\/content\/4c8d65cc-d652-4998-9c47-e06763710773\" data-trackable=\"link\">spending plans<\/a> she set out on Wednesday.\u00a0<\/p>\n<p>Most government departments have committed to deliver efficiency gains worth at least 3 per cent of their day-to-day <a href=\"https:\/\/www.ft.com\/uk-government-spending\" data-trackable=\"link\">spending<\/a> by 2028-29, with some set to save 8 per cent or more.\u00a0<\/p>\n<p>Departmental efficiency plans <a href=\"https:\/\/assets.publishing.service.gov.uk\/media\/68492799d0ca5d7801e4e709\/Efficiency_delivery_plans_-_supplementary_document_-_FINAL.pdf\" data-trackable=\"link\">published <\/a>by the Treasury show the bulk of these savings are supposed to flow from the NHS productivity plan, which targets efficiencies of almost \u00a39bn a year by 2028-29 \u2014 backed by investment of \u00a310bn in technology and digital transformation.\u00a0<\/p>\n<p>But <a href=\"https:\/\/www.ft.com\/rachel-reeves\" data-trackable=\"link\">Reeves<\/a> is also counting on a rollout of AI and automation across government \u2014 both in public-facing service delivery and in the daily work of officials \u2014\u00a0to effect a \u201cmajor overhaul in\u2009.\u2009.\u2009.\u2009productivity and efficiency\u201d.\u00a0<\/p>\n<p>Analysts question whether this will be achievable. Yael Selfin, chief UK economist at KPMG, said productivity increases would be \u201cdifficult to attain\u201d as initial investments in digital technologies and AI \u201cmay be difficult to implement\u201d.\u00a0<\/p>\n<p>One example of promised gains is the Ministry of Justice\u2019s plan to pilot tech-enabled remote check-ins for offenders in the community, aiming to free up 27,000 hours of probation staff time a year. <\/p>\n<p>The department said this, combined with a rollout of AI to streamline routine tasks, would account for almost a third of the total efficiency gains of \u00a3356mn it is targeting.\u00a0<\/p>\n<p>The Department for Work and Pensions said it was deploying AI to help advisers identify vulnerable customers and to scan CVs in job centres. These, and other digital improvements, will account for \u00a3177mn out of a total \u00a3312mn efficiency gains by 2028-29.\u00a0<\/p>\n<p>The Home Office, Ministry of Housing and Department for Energy Security and Net Zero are also counting on \u201cintegrating AI into the working habits of staff\u201d in order to cut the amount of time officials spend summarising, drafting and taking notes.\u00a0<\/p>\n<p>The Department for Transport, which is facing one of the tightest departmental settlements, is explicit that it is counting on making greater use of AI and digital tools in order to cut jobs.<\/p>\n<p>But even in the Department for Science, Innovation and Technology \u2014 which claims it will serve as \u201can exemplar of modern, digital government\u201d \u2014 AI and automation will not be enough to deliver savings on the scale Reeves has demanded. <\/p>\n<p>More traditional cost-cutting, including job cuts at senior level and a clampdown on consultants, will play a bigger role, the costings show.<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image o-teaser--opinion js-teaser\" data-id=\"f19422fe-2453-4208-b71f-dd7a16ec2c4a\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/f19422fe-2453-4208-b71f-dd7a16ec2c4a\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2493\/1402\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252F9c2bf59b-098c-4743-8685-4312f28a8509.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"Ellie Foreman-Peck illustration of an open purse revealing city infrastructure, including factory chimney and a train coming out of it\"\/><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Along with workforce reform and cuts to consultancy spending, the Treasury is calling for old-fashioned penny-pinching in procurement \u2014 and a crackdown on \u201cwasteful\u201d staff away days and branded merchandise.\u00a0<\/p>\n<p>Ben Paxton, a senior researcher at the Institute for Government, questioned the scope for AI-driven savings, saying that while the government was right to be \u201con the front foot\u201d in setting out how it would make savings, it did not remove \u201cthe need to invest in basic digital infrastructure\u201d, in the NHS in particular.<\/p>\n<p>\u201cAI is often not the barrier. It\u2019s the printer working, or being able to log on to a computer. The capex for public services is going to have to come alongside that for it to translate into efficiency savings.\u201d<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Rachel Reeves is banking on big productivity gains from the adoption of AI across the UK government to help deliver efficiency savings totalling \u00a314bn by the end of the parliament.\u00a0 The chancellor said she had [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":288588,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[11297,119575,4378,5568,10946,10953],"dealstore":[],"offerexpiration":[],"class_list":["post-288587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-banks","tag-eke","tag-government","tag-rachel","tag-reeves","tag-savings"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rachel Reeves banks on AI to help eke out UK government savings - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=288587\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rachel Reeves banks on AI to help eke out UK government savings - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Rachel Reeves is banking on big productivity gains from the adoption of AI across the UK government to help deliver efficiency savings totalling \u00a314bn by the end of the parliament.\u00a0 The chancellor said she had [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fivemor.com\/?p=288587\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-11T19:08:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/06\/https3A2F2Fd1e00ek4ebabms.cloudfront.net2Fproduction2Fd605f84b-30e2-4bd4-9440-78d01c644136.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"700\" \/>\n\t<meta property=\"og:image:height\" content=\"393\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/fivemor.com\/?p=288587#article\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/?p=288587\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\"},\"headline\":\"Rachel Reeves banks on AI to help eke out UK government savings\",\"datePublished\":\"2025-06-11T19:08:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=288587\"},\"wordCount\":598,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=288587#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/06\/https3A2F2Fd1e00ek4ebabms.cloudfront.net2Fproduction2Fd605f84b-30e2-4bd4-9440-78d01c644136.jpg\",\"keywords\":[\"Banks\",\"eke\",\"Government\",\"Rachel\",\"Reeves\",\"savings\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/fivemor.com\/?p=288587#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fivemor.com\/?p=288587\",\"url\":\"https:\/\/fivemor.com\/?p=288587\",\"name\":\"Rachel Reeves banks on AI to help eke out UK government savings - 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