Sir Keir is expected to lay into the ‘cottage industry of checkers and blockers slowing down delivery for working people’.

In an article for the Telegraph ahead of his speech in Yorkshire, the premier said: ‘The Civil Service has grown by 130,000 since the referendum, and yet frontline services have not improved. It’s overstretched, unfocussed and unable to deliver the security people need today.

‘So we will make sure our civil servants are equipped for the challenges of the modern era.

‘We’ll bring them closer to communities, free them from bureaucracy and provide the right incentives for success.

‘We’ll harness the power of AI to make every department more innovative and efficient.

‘We’ll redirect resources towards the frontlines. More teachers in schools, nurses in hospitals and police on our streets to make the state work for working people.

‘Because the problem isn’t our fantastic civil servants – it’s the system they’re stuck in.’

Highlighting problems with the planning system, Sir Keir said that he knew business were ‘unable to grow because of red tape’.

‘Families unable to buy because an overcautious flabby state got in the way,’ he added.

He is setting a new target across government to cut administrative costs of regulation by 25 per cent.

Sir Keir will say that no official’s ‘substantive time’ should be spent on a task where technology can ‘do it better, quicker and to the same high quality and standard’.

He will set out details of how he plans to digitise public services and the state, underpinned by the mantra that ‘no person’s substantive time should be spent on a task where digital or AI can do it better, quicker and to the same high quality and standard’.

Sir Keir will set out proposals to recruit 2,000 tech apprentices to boost the take-up of AI on Whitehall.

He is also set to argue that global uncertainty means the Government must ‘go further and faster in reshaping the state to make it work for working people’.

On Tuesday, Sir Keir instructed ministers to stop a ‘trend’ of ‘outsourcing’ decisions to ‘other bodies’ begun under the previous government and assess whether regulations contributed to Labour’s agenda.

Later the same day, the Government also announced that the Payment Systems Regulator will be abolished and merged with the Financial Conduct Authority in what Sir Keir said was ‘the latest step in our efforts to kickstart economic growth’.

However, critics have mocked the move, pointing out Labour has created other quangos and the watchdog does not cost the taxpayer anything.

Ministers appear to have grown increasingly frustrated with the role of regulators as they attempt to boost the UK’s economy, with the Chancellor urging them to focus more on encouraging growth.

Sir Keir is expected to say: ‘The great forces buffeting the lives of working people, and an era of instability driving in their lives…

‘The need for greater urgency now could not be any clearer. We must move further and faster on security and renewal.

‘Every pound spent, every regulation, every decision must deliver for working people… If we push forward with the digitisation of government services. There are up to £45bn worth of savings and productivity benefits, ready to be realised.

‘And that’s before we even consider the golden opportunity of artificial intelligence. An opportunity I am determined to seize.’

Technology Secretary Peter Kyle said: ‘There is a £45billion jackpot to secure if we use technology properly across our public sector – but we can’t hope to come close to securing that if we don’t have the right technical talent with us in government.

‘Not only will these changes help fix our public services, but it will save taxpayer cash by slashing the need for thousands of expensive contractors and create opportunities across the country as part of our Plan for change.’

However, No10 yesterday refused to say whether the civil service headcount will be reduced under the proposals for reform.

Asked whether the state would be smaller, the PM’s press secretary said: ‘No, it’s about reshaping the state and taking advantage of technology.’

The Guardian reported yesterday that No10 and the Treasury were interested in proposals drawn up by think tank Labour Together to reshape the state under plans dubbed ‘project chainsaw’.

The Prospect trade union said the Government must reform civil service pay to compete for the skills it needs.

General secretary Mike Clancy said: ‘Technology has the potential to transform government delivery and improve outcome for the public, and it is right that the government are pressing ahead with plans to make better use of new tech in the public sector.

No10 has been forced to deny that the initiate has been nicknamed ‘Project Chainsaw’ internally, after Elon Musk’s dramatic stunt to highlight US cost-cutting

‘However the government will find it challenging to compete for the skills needed to deliver on this agenda under the current pay regime, which is why Prospect is campaigning for more pay flexibility to recruit and retain specialists in the civil service in areas like science and data.

‘Government should also be doing more to utilise the talented specialists it already has at its disposal, many of whom are working in regulators and other agencies that have been starved of funding in recent years.

‘Civil servants are not hostile to reforms, but these must be undertaken in partnership with staff and unions. I urge everyone in government to avoid the incendiary rhetoric and tactics we are seeing in the United States, and to be clear that reforms are about enhancing not undermining the civil service.’