According to Chancellor of the Exchequer Rachel Reeves, the UK government is planning to reduce the number of civil servants by 10,000, as stated before the key statement on the public finances. The Labour government intends to maintain its strategy of increasing real-terms spending in each year of the current parliament. However, there will be a focus on reallocating funds to different departments and promoting efficiency savings through enhanced technological utilization like artificial intelligence. Reeves expressed confidence in achieving the target reduction of civil servant numbers and emphasized the need to address the increases in the workforce that occurred during the Covid period. She mentioned examples of how technology, such as AI, could replace certain tasks, like briefing roles and fraud reduction in tax collection. Reports suggest that Labour may ask the civil service to identify cuts amounting to £2 billion. Reeves is scheduled to present her spring statement on Wednesday, which will also include updated economic forecasts from the Office for Budget Responsibility. The Chancellor's flexibility to adhere to fiscal rules has diminished since the last budget due to poor economic growth and high borrowing costs. She is expected to adjust government spending and welfare plans to restore this flexibility without resorting to additional tax increases.