RACHEL Reeves vowed to take an “iron-fist” to Whitehall spending last night as she demanded colleagues get real on cutting the size of the state.
The Chancellor pledged to root out waste and inefficiency with every pound of taxpayers’ cash facing a stringent ‘value for money’ test.
Ministers will be instructed to identify cuts of up to five percent as part of a fresh evaluation of spending until 2029, with financial leaders invited to examine the proposals.
Spending that is not contributing to Sir Keir Starmer’s priorities such as growth or fixing the NHS will be stopped in its tracks.
Ms Reeves said: “The previous 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.
Through the modernization of our public services, we aim to enhance their effectiveness in meeting current needs, resulting in cost savings and improved services for citizens nationwide.
“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.”
Experts from banks will examine what spending is seen as necessary.
Academic experts will also be brought in.
An evaluation into £6.5 million on placing social workers in schools has already been scrapped as it was not seen as cost-effective.
Although departments were initially advised to make two percent in savings during the Budget announcement, senior Cabinet Minister Pat McFadden mentioned that further reductions are yet to be uncovered.
Shadow Treasury Minister Richard Fuller said: “Delivering value for money for the taxpayer is a noble goal, but Rachel Reeves’s 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.”
Meanwhile, Ms Reeves told EU finance chiefs she will not be picking sides between Brussels and Donald Trump.
She became the first Chancellor since Brexit to address the group as part of a re-set to strengthen ties.
Wasted words
By The Sun Says
“EVERY pound” of spending will now be scrutinised to get value for taxpayers’ money.
We wish we had a pound for every time Governments have promised that.
They all say it. And the gargantuan Whitehall waste continues.
We wish Chancellor Rachel Reeves well if she really is intent on “totally rewiring how the Government spends money”.
But politics will always prevail.
Foreign aid, for instance, is now a byword for waste, totalling billions a year.
Will ministers really axe it?
How about the idiotic deal where we PAY to give away our Chagos Islands?
Or the vast bungs to France despite them failing to keep back migrants?
Ms Reeves vows to act with an “iron fist against waste”.
Cabinet Minister Pat McFadden yesterday had warm words about Elon Musk’s US efficiency drive.
Forgive our scepticism, but we’ll believe Labour’s purge on waste only if — this time — it finally bears fruit.
