Rachel Reeves will begin a total “rewiring” of how taxpayers’ money is spent as she vows to tackle waste with an “iron first”.
The Chancellor is on Tuesday launching a deep dive into how “every pound” is spent in the first major spending review in a decade and a half. Cabinet ministers will be told their budgets must be focused on the Prime Minister’s Plan for Change, which includes tough new milestones on crime, the NHS and schools. They will receive letters from the Treasury ordering them to stop spending cash if it is not contributing to a priority.
As part of the Spending Review, Chief Secretary to the Treasury Darren Jones will shadow doctors, nurses and police officers to learn how taxpayers’ cash is being spent across Britain. He said he will not only be reviewing what money is spent on but also how public services can be modernised so money is spent more efficiently.
Businesses will also be able to put forward ideas on how public services can be better delivered through an online portal. Departments’ budgets will be scrutinised by a panel of experts, which will include former senior managers at Lloyd’s and Barclays banks and the Co-op group.
Ms Reeves said the previous Tory government “allowed millions of pounds of taxpayers’ money to go to waste on poor value for money projects”. “We will not tolerate it; I said I would have an iron grip on the public finances and that means taking an iron fist against waste,” she said.
“By reforming our public services, we will ensure they are up to scratch for modern day demands, saving money and delivering better services for people across the country. That’s why we will inspect every pound of government spend, so that it goes to the right places and we put an end to all waste.”