Rachel Reeves’ new “value for money” office has been branded a “gimmick” that will waste taxpayers’ money, MPs have said.
The Commons’ spending watchdog said the Office for Value for Money (OVfM), which was created last year, seemed to be a “red herring” as it risks duplicating work already being done by a range of bodies, such as the National Audit Office.
The committee’s chairman, Labour’s Dame Meg Hillier, said that the OVfm is an “understaffed, poorly defined organisation” and that she fails to see how it will have a “meaningful impact on driving efficiencies in departments”.
Hiller said: “Our committee has concluded the Office for Value for Money is an understaffed, poorly defined organisation which has been set up with a vague remit and no clear plan to measure its effectiveness.
Rachel Reeves’s ‘value for money’ office is branded a ‘red herring’ as it risks wasting taxpayer cash on duplicated work
Getty
“All of which leads me to feel this initiative may be something of a red herring.
“The Treasury needs to share far more information about what this small team will actually achieve for the taxpayer which cannot be done elsewhere.
“It must also be transparent about how it will operate and how it will assess its effectiveness.”
Reeves launched the OVfM in her November budget, where she insisted that it would help “realise the benefits from every pound of public spending’ on infrastructure and public services”.
LATEST DEVELOPMENTS:
However, MPs on the committee pinpointed to the appointment of David Goldstone, who is only contracted for a year.
Controversy had previously ensued when it emerged that Goldstone, a Whitehall veteran, would be paid £950 a day for his task of finding a way to cut public spending.
The Treasury Committee highlighted that the department has failed to establish how it will evaluate the OVfM’s work.
A Treasury spokesman defended the office, stating: “For too long, taxpayer money has been squandered and we are putting an end to it.”
Rachel Reeves launched the OVfM in her November budget, where she insisted that it would help ‘realise the benefits from every pound of public spending’ on infrastructure and public services’
PA
The spokesperson emphasised that the OVfM’s role would complement existing government functions, drawing on expertise across disciplines to identify waste.
The defence comes as Reeves faces criticism over her Budget, which has been linked to the pound’s decline on financial markets.
The Treasury maintains the office will focus particularly on areas where departmental spending may overlap.