Boris Johnson threatened to “privatise the arse” off the Passport Office, as he lashed out at the organisation over huge delays putting holidays at risk.
The prime minister also put other quangos on notice to improve at a cabinet meeting to discuss the cost-of-living crisis – but at which ministers were told there will be no extra spending.
Mr Johnson is said to be “horrified” at the Passport Office repeatedly breaching a new 10-week target for processing applications, branded an “absolute shambles” by MPs.
There has been an unprecedented surge in demand after the lifting of Covid restrictions, because 5 million people delayed renewing their passports during the pandemic.
But Brexit is also a factor, because Britons must now have at least three months left on their passports in order to travel to the EU, putting more strain on the system.
A senior government source said Mr Johnson had used the phrase “privatise the arse” at the cabinet meeting, as a threat if the backlogs cannot be cleared.
Thousands of holidaymakers have been left with no choice but to pay £150 to fast-track their passport applications in time for the summer break.
That makes it a cost of living issue, the prime minister is thought to believe – because people are having to fork out for the premium service to get their passport on time.
The Driver and Vehicle Licensing Authority (DVLA) is also facing a huge backlog of applications, delays potentially preventing professional drivers from getting back to work.
The prime minister also pledged to increase scrutiny of what he called the “post-Covid mañana culture” at some public bodies, the Evening Standard reported.
The comment would come close to calling some civil servants lazy – as the phrase is defined as meaning “anytime between tomorrow and never”.
It comes after Jacob Rees-Mogg was strongly criticised for leaving “nasty” notes on empty desks in Whitehall, in an apparent attack on civil servants working from home.
No 10 also dropped a fresh hint that ministers will relax the rules to allow nurseries to have fewer members of staff, to help parents with costs.
A previous plan was floated to cut the staff/child ratio, perhaps to allow nursery staff to supervise five children under two, rather than just three.
Downing Street is desperate to find measures that would cut costs for people without requiring the government to spend more money.
Bridget Phillipson Labour’s shadow education secretary, accused ministers of planning to “drive down quality”, when investment in more early years’ places is needed.
“Parents are having to work fewer hours or leave jobs because they cannot find or afford childcare, once again failing children and families,” she said.
“Now the government’s solution is to drive down quality whilst making no difference to availability.”
