A dramatic plan to slash the number of prison officers and streamline courts in England and Wales is being drawn up by the government in an attempt to deliver £1bn in savings.

{mosimage}A leaked internal document from the Ministry of Justice, obtained by The Observer, warns that jobs across the criminal justice system will be lost as it complies with Treasury-imposed ‘efficiency savings’ of 3 per cent a year.

‘The efficiency challenge for [the Ministry of Justice] is substantial,’ the document says. ‘Identifying and delivering 3 per cent value-for-money savings will be a big challenge for us.’

Prison managers believe that jail wings will have to close to cope with an estimated £180m in cuts imposed in last month’s spending review. Harry Fletcher, assistant general secretary of the probation union, Napo, said: ‘Cutting probation and prison budgets can only be achieved through cutting staff. This will lead to more crime, more victims and public protection being compromised.’

The government declined to comment last night. Senior ministry officials are to hold a seminar on imposing the savings. A similar meeting last month produced the document leaked to The Observer. The savings will bite across the criminal justice system:

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