Keir Starmer Plans Government Overhaul: Abolishes Payment Systems Regulator, Targets £45 Billion in AI-Driven Savings

Prime Minister Keir Starmer is set to announce a significant overhaul of the UK government, focusing on reducing regulation and enhancing the use of technology within the civil service. In a speech scheduled for Thursday, Starmer will outline his vision to reshape the state to better cope with global instability, aiming to cut the administrative costs of regulation by 25% to stimulate economic growth. Starmer's plan includes the abolition of the UK's Payment Systems Regulator, a move intended to reduce what he describes as unnecessary regulation. This decision aligns with his broader strategy to streamline government operations and foster a more efficient public sector. A key component of the reform is the integration of artificial intelligence (AI) into the civil service. Starmer will propose that AI should replace civil servants' tasks where it can perform them more effectively, potentially unlocking £45 billion in annual productivity savings. This initiative is part of a broader 'digital revolution' aimed at reshaping the British state. Technology Secretary Peter Kyle has highlighted the potential for £100 million in savings through these reforms, emphasizing the recruitment of 2,000 tech apprentices to enhance the civil service's digital capabilities. The Prime Minister's approach has drawn mixed reactions. While some see it as a necessary modernization, unions have expressed concerns about job losses and the impact on civil service morale. Starmer has emphasized that the goal is not to cut staff but to enhance efficiency and service delivery, focusing on higher skills and the Civil Service, which has grown by 130,000 since the Brexit referendum, yet frontline services have not improved. He aims to address what he calls a 'cottage industry of checkers and blockers' within the government during an 'era of instability'.