Gordon Brown is today expected to reveal how £10bn of public sector efficiency savings will be made over the next four years.
About £3bn will come directly from Whitehall cuts.
The prime minister is expected to announce £100m in savings in the cost of senior civil servants and the abolition of 123 of the 752 quangos, saving £500m a year.
The move to cull quangos could lead to the loss of thousands of public sector jobs.
The Conservatives have already pledged to scrap quangos like the Homes and Communities Agency and the Tenants Services Agency, if they win the next general election.
The number of consultants used in central government will be halved and marketing costs will be trimmed back by a quarter, saving government £650m.
Liam Byrne, the chief secretary to the Treasury, will outline plans to move tens of thousands of civil servants out of Whitehall to cheaper regional offices over the next few years.
Byrne told the Times: “This is about how we drive up standards while driving down debt. It’s about ensuring that high standards in public service are not a privilege but a right.”