Bankers are set to evaluate government expenditures as part of an initiative to integrate the private sector “into the core of government operations”.
An external audit will be introduced in the first line-by-line expenditure assessment of government ministries in 17 years.
According to plans revealed by the Chancellor Rachel Reeves, “every pound” spent by the government will undergo thorough examination to ensure it delivers value for taxpayers.
It is anticipated that departments will identify savings and improvements in their financial plans as Ms. Reeves expressed her intention to eliminate inefficiencies in the public sector.
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“The prior administration permitted millions of pounds of taxpayer funds to be squandered on low-value projects,” she stated.
“We will not accept this; I promised an unwavering control over public finances, which necessitates a firm stance against wastefulness.”
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Departments will be instructed by Ms. Reeves that they cannot function in a “business-as-usual” manner while reassessing budgets.
The fresh budgets will be evaluated by “external experts,” including former senior executives from Lloyd’s Bank, Barclays, and the Co-op.
These financial examiners will provide “an impartial” perspective on what expenditures are necessary, according to the government.
Additional experts will come from academia, think tanks, and other sectors of the private industry.
All expenditures must align with the government’s proclaimed objectives or they will not receive funding.
“Some of these choices will prove challenging,” noted the government, as funding should be discontinued if it fails to support a priority.
The private sector will also have the opportunity to influence government budgeting via the introduction of an online feedback platform for policy suggestions.
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The Chancellor is aiming to reduce state expenditure after identifying a “£22bn deficit” between government spending and revenues.
Her budget announced in October outlined plans to decrease spending over the next few years, requiring departments to achieve a 2% “productivity, efficiency, and savings goal”.
On Monday, the government initiated a £100m fund and called upon “disruptors, innovators, and creative minds” to assist in enhancing the productivity of the civil service.
New “test-and-learn groups” will be implemented in public services throughout the UK to “experiment and innovate” in a bid to “address the most pressing issues facing the public sector”.
