GEORGE Osborne is to ask public sector employees for their help to implement UK Government spending cuts in their workplaces.

The Chancellor will today launch an 'efficiency challenge' by writing to millions of people employed in public services and asking for suggestions on ways the Government can "do more for less".

The findings of an online survey will then be used to inform this year's spending review, which could see departmental spending cuts of up to 40 per cent imposed. The Conservative administration wants to make £20 billion of further savings in an attempt to eliminate Britain’s deficit by the end of the decade.

The appeal will receive a frosty reception in some quarters, with Mr Osborne already capping public sector pay rises at one per cent a year for another four years, which is likely to amount to a real terms cut.

The letter, co-authored by Chief Secretary to the Treasury Greg Hands, will be sent out to more than 57,000 public sector employees in Scotland who work in matters reserved to Westminster.

In the letter, Mr Osborne is expected to say: "You know better than most where we can take the next steps. You know first-hand where things are working well on the frontline of public services, but also where the waste is and where we can provide better services for less money.?

"You know where we can go further to reform our public services and where we can devolve more power so that local people have more control and local leaders are more accountable.

"We are inviting you to share with us your ideas for how to get more for less. ?If you think there is a better way to do things, we want to know.

"These will be looked at and considered by the Treasury and Cabinet Office, in partnership with government departments. Together we will deliver a stronger economy for a country that lives within its means."

It follows a similar exercise launched shortly after Mr Osborne became chancellor in 2010. Then, ideas such as stopping the distribution of National Insurance cards and an overhaul of criminal background checks were put into practice after being suggested by members of the workforce.