Boris Johnson has told his cabinet to prepare for cuts as part of an ‘efficiency review’.
Ministers were told that the “savings and efficiency review” will take place later in the year as the chancellor looks to make savings following the pandemic.
A statement from Downing Street said: “The prime minister highlighted that departments are being asked to take part in a savings and efficiency review ahead of the Spending Review later this year.
“The purpose is to learn the lessons from the last year in how we can run services more efficiently and ensure that we focus our high levels of spending on our key priorities. This is a standard part of the Spending Review process.”
It comes as the PM told his ministers that “we are not out of the woods yet” due to concerns over new coronavirus variants.
A No 10 statement said: “Cabinet concluded with an update on the pandemic.
“The PM reiterated that the data continues to look good but warned that we are not out of the woods yet as variants of concern continue to pose a threat.
“The PM said that while the road ahead looks positive, there will still be challenges and this government will continue to take tough decisions where necessary to protect both lives and livelihoods.”