Spending that does not contribute to the government’s priorities should be stopped, the Treasury will tell ministers as Chancellor Rachel Reeves promises to take “an iron fist against waste”.
As part of a spending review covering up to 2029, Reeves will ask departments to identify efficiency savings worth 5% of their current budgets.
Department budgets will also be scrutinised by panels, including former senior bankers, to advise on what spending is necessary.
The Conservatives say Reeves either “hasn’t got a grip on her own departments or hasn’t worked out how she is going to make Labour’s sums add up without coming back to the country with more taxes and more borrowing”.
Delivering value for money for the taxpayer is a noble goal.
But Rachel Reeves’ record so far has been to dole out inflation busting pay rises to Labour’s union paymasters whilst mandating nothing in return, and making no reforms to public sector productivity or welfare spending.
Setting out the details of its spending review, the Treasury said: “Departments will be advised that where spending is not contributing to a priority, it should be stopped.”
Every single pound the government spends will be subjected to a line-by-line review to make sure it’s being spent to deliver the Plan for Change and that it is value for money.
The Treasury says the chancellor will “work with departments to prioritise spending that supports the milestones to deliver the plan”.
Department budgets will also be reviewed by panels, including former senior management at Lloyd’s Banking Group, Barclays Bank and the Co-operative Group working alongside experts from think tanks, academics and others from the private sector.
The Treasury says the panels will “bring an independent view to what government spend is or isn’t necessary, with a mixture of expertise from local delivery partners, think tanks, academic experts and private sector backgrounds”.
The previous government allowed millions of pounds of taxpayers’ money to go to waste on poor value for money projects.
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