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Wednesday 12 March 2025 10:30 pm  |  Updated:  Wednesday 12 March 2025 6:04 pm

Keir Starmer to pledge red tape rollback in bid to ‘reshape the state’

By: Jessica Frank-Keyes

Political Reporter

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Keir Starmer has no idea to generate economic growth
Pic: PA

Sir Keir Starmer is expected to pledge to slash red tape for businesses in a bid to “reshape the state” of the UK amid what he will call a new “era of instability”.

The Prime Minister is set to make an announcement on Thursday about his plans to reform the British state, cut regulation, and deploy artificial intelligence (AI) within the civil service.

It comes amid growing international turbulence over US President Donald Trump’s attempt to end Russia’s war in Ukraine, in a shift away from Europe’s reliance on American defence.

He is expected to highlight “the great forces buffeting the lives of working people, and an era of instability driving in their lives” and to argue: “The need for greater urgency now could not be any clearer. We must move further and faster on security and renewal.”

Sir Keir is also set to insist: “Every pound spent, every regulation, every decision must deliver for working people.

“If we push forward with the digitisation of government services. There are up to £45bn worth of savings and productivity benefits, ready to be realised.

“And that’s before we even consider the golden opportunity of artificial intelligence. An opportunity I am determined to seize.”

National security

He will reflect on international events of the last few weeks, No10 said, and argue that “the fundamental task of politics right now is to take the decisions needed on national security”.

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The move also comes after Starmer opted to hike UK defence spending from 2.3 per cent of GDP to 2.5 per cent by 2027 – after previously only committing to a pathway to reaching 2.5.

And he will set out his belief in the power of “an active government that takes care of the big questions, so people can get on with their lives”, No10 added, alongside arguing that the UK’s bureaucracy has become bigger, but weaker and isn’t delivering on its core purpose.

Starmer is expected to announce modernisation and plans for new AI and tech teams within public sector departments in a bid to boost efficiency, and 2,000 new tech apprenticeships.

He will also commit to a government-wide target to cut administrative costs of regulation by 25 per cent, following the scrapping of the Payment Systems Regulator (PSR).

Tech and AI state

And the government is set to commit to a new mantra stating: “No person’s substantive time should be spent on a task where digital or AI can do it better, quicker and to the same high quality and standard.”

Technology secretary Peter Kyle said: “Not only will these changes help fix our public services, but it will save taxpayer cash by slashing the need for thousands of expensive contractors and create opportunities across the country.”

It follows reports the Prime Minister is reportedly planning to slash thousands more Whitehall jobs than expected in his speech, amid a crackdown on more than 300 quangos, as he aims to radically overhaul the British state, according to the Guardian.

The Labour leader, the newspaper reported, will also announce the reorganisation of hundreds of semi-public administrative bodies, including NHS England, which together employ almost 300,000 people, as part of money-saving efforts to recoup some £353bn.

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