Change is everywhere in the civil service; the organisation will emerge from these times as a very different beast.

We recently announced a massive £3.75bn in savings achieved in just the first 10 months of the coalition government, from May 2010 to March 2011. The minister for the Cabinet Office, Francis Maude, pledged in October to leave no stone unturned in the hunt for savings. Since then, both in the Cabinet Office and across the whole of government, civil servants have worked tirelessly to find those savings and make the necessary changes to the way we work. We have already achieved a huge amount in a short space of time; that work continues at a pace, and there are still savings to be found.

Right from the start, we knew that the spending review settlement would mean that changes would have to be made quickly in the civil service if we were to lead the whole system through the difficult times ahead. Current spending on public services had to contract by about eight per cent in real terms over four years, while admin budgets were reduced by 30 per cent.

As part of this change process, there has been downsizing – to use that dreadful word. We felt strongly that when people leave the civil service we must treat them with the utmost respect, whilst also acknowledging the importance of nurturing and inspiring those that remain to tackle the challenges of the coming years. So our first resolve was to get on with it with dignity and respect, concentrating on the challenges of the future whilst leading some of the most radical public service reforms announced by any government.

How are we doing? Well, there is always a low point in any change programme. We understand that many are anxious about their futures and their pensions. There is still a lot more to do – but we continue to learn as we go, both from each other and from others who have been there, done that, and procured the T-shirt (at a good price).

Thanks to the innovation, professionalism, dedication and unique adaptability of the civil service, we are doing very well, driving through a hugely demanding agenda.

In staffing terms, the size of the civil service has fallen by over 17,000 to around 470,000 full-time civil servants, the lowest number since World War II. Reductions in staff numbers have been achieved through a combination of a recruitment freeze, natural wastage, voluntary exits and, when no other sensible options remain, compulsory redundancy. We have been careful not to swap permanent staff reductions for higher expenditure on consultancy and interims. In fact, during this year expenditure on consultants and interim staff has also fallen by over half.

We have maintained our investment in people for the future by continuing the recruitment of the brightest and best from our universities into our Fast Stream programme, and by taking on apprentices. Last year 22,000 graduates registered an interest for just over 600 jobs in the Fast Stream.

We are changing the rewards package for civil servants, starting with a pay-freeze, a more affordable redundancy scheme, full pay transparency for the most senior civil servants, and the Hutton pension reforms which are currently being discussed with the trade unions.

We are seeking to work more flexibly in a drive to increase efficiency and get the right skills, working on the right projects, at the right time. Assignment to projects, rather than permanent standing teams, lies at the heart of this. Meanwhile we are lowering property costs and increasing collaborative working through co-location. Part of the Cabinet Office is now sharing space with HM Treasury at 1 Horseguards, saving money and joining up the centre of government on key issues.

The civil service is becoming a more professional organisation. Every department now has a qualified finance director – something that cannot be said of the FTSE100! Of the top 41 HR leaders, 28 are qualified with the Chartered Institute of Personnel and Development (CIPD). We have strengthened the analytical community, doubling the number of professional statisticians and tripling the number of economists in the civil service since the mid-’90s. And we’re continuing to bring in senior business leaders to act as non-executive directors on departmental boards, which will help us focus on how best to get commercial sector skills into departments.

This is just a snapshot of the things that have been going on. But what is the future civil service that we are trying to build?

The challenges that face the 21st century civil servant will be dramatically different: government’s reforms will have to keep pace with advances in technology, dramatic economic and world events, the impact of climate change, and other developments perhaps not even possible to foresee today.

These are not easy times for the civil service. But, as it has during seriously challenging periods in the past, the service will continue to draw on the dedication and quality for which it is internationally renowned. Our heritage as an independent civil service, with world-class policymaking and professional skills, needs to be maintained and continuously improved. But we will also require additional skills in new areas, such as commissioning, behavioural economics, agile project methods, and digital engagement.

I am proud to be a civil servant today, working amongst some of the most determined, dedicated and professional people during what is undoubtedly a very challenging time in our history.