Reeves pledges ‘iron fist against waste’ as government launches spending review

Chancellor Rachel Reeves has pledged to “inspect every pound” of public spending – as the Treasury is set to instruct government departments to find savings in a major spending review.

External experts from the private sector will scrutinise department budgets as part of the review to determine what aspects of government spending are essential

Chief Secretary to the Treasury will advise departments that spending should be stopped where it is not contributing to a priority.

The Chancellor said: “By totally rewiring how the government spends money we will be able to deliver our Plan for Change and focus on what matters for working people. 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.

“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.”

An online portal is also set to be launched to give businesses the chance to submit policy ideas in the spending review.

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Read more about the Plan for Change:

• What is Keir Starmer’s Plan for Change – and Labour’s six policy milestones?
• ‘Why Keir Starmer should embrace populism ahead of the next election’
• Plan for Change: ‘Voters will reward Labour in 2029 if Starmer fixes public services’
• ‘Starmer’s ‘Plan for Change’ speech needs to deliver real solutions or face testing voters’ patience’
• Plan for Change: ‘If early years is key for the PM, we need a revamped Sure Start’
• Starmer poised to unveil ‘measurable milestones’ in Labour’s missions for government

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