The Palace of Westminster at the early morning in London (Image: Getty)

       Top civil servants have been told they could face the sack if they fail to save taxpayers money under rules announced by the government.

       Senior leaders will be held personally responsible for achieving savings in their departments as part of reforms to how the civil service manages performance.

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       Those who do well could be rewarded while those who fail to hit targets face dismissal.

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       Cabinet Office minister Pat McFadden said he wants to create a more "agile and modern" state.

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       He said the public "must be confident we are spending every pound of their money well".

       Mr McFadden said: "It is vital that senior leaders are not just encouraged, but held responsible for this.

       "We need them to build productive and high performing teams, to deliver on our plan to put more money in people's pockets, get the NHS back on its feet and rebuild Britain.

       "We will introduce new checks to identify and tackle poor performance where we find it, and to recognise the good work of senior leaders across the civil service."

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       Government departments have been ordered find efficiency savings worth 5% of their budgets as part of a spending review set to finish in June.

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       Back in December a government source said this could see 10,000 jobs cut.

       The Tories also attempted to improve performance in the civil service.

       Conservative paymaster general John Glen said high performance in Whitehall was not "recognised, rewarded or incentivised properly", and suggested linking civil service pay to performance.