PARLIAMENTARY DEBATE
Public Spending: Value for Money - 4 March 2025 (Commons/Commons Chamber)

The Government are committed to spending taxpayers’ money efficiently. At the autumn Budget, we launched the Office for Value for Money to realise benefits from every pound of public spending. Through phase 1 of the spending review, Departments were set a 2% productivity, efficiency and savings target to ensure that every pound of taxpayers’ money is well spent. The next phase of the spending review has gone further. I have asked each Department to conduct a line-by-line review of existing day-to-day budgets to identify where spending is no longer aligned with this Government’s priority or is poor value for money.

I thank the Minister for his answer. As a member of the Public Accounts Committee, I see on a weekly basis the waste that existed under the previous Government, from the billions spent on badly procured covid contracts to a Rwanda scheme that delivered nothing. What steps will the Minister be taking to make sure that we deal not only with value for money for the taxpayer, but the legacy of waste under the previous Government?

My hon. Friend is absolutely right. [Interruption.] Conservative Members are chuntering, but that is their legacy. Not once in 17 years was a zero-based review done, not once did former Conservative Ministers require their Departments to go line-by-line through their budgets, and not once did they think that the responsible thing to do was to go through to check how every pound of taxpayers’ money was spent. Instead, there was an argument each year: how much more money am I going to get; how much more borrowing will there be to pay for these bills; and how many more promises am I going to make that I know I will not deliver. The British people were sick to death of that approach to politics, and this Government are taking a fundamentally different approach.

The adoption and special guardianship support fund provides excellent value for money in Mid Sussex for Beacon House, which is a specialist mental health and trauma clinic. Unfortunately, however, the clinic’s financial future is looking uncertain. Does the Minister agree that investing in mental health is always a good idea when it comes to getting people back to work and well again and able to contribute to society? Will the Minister work with the Department for Education to secure future funding for this vital service?

I agree entirely that mental health services are in desperate need of investment and support across the country. The evidence is very clear that there are, for example, too many people out of work who would be like to be in work, but who are waiting at home unwell and unable to receive the support and services that they need and deserve. The Health Secretary is working hard on that at the moment. We are going into the spending review negotiations over the coming weeks and months, and we will set out further detail in due course. I look forward to being able to provide more information specifically as we go through that process.

I call the shadow Minister.

Improving public sector productivity was the No.1 ask of Institute of Directors’ businesses trying to weather Storm Rachel, but under Labour, public sector productivity has fallen further behind pre-pandemic levels. The number of civil servants working from home has gone up and, shockingly, as The Daily Telegraph has found, thousands of civil servants are being signed off to work from abroad. Therefore, whether it is on civil servants working from their bedrooms or from Benidorm, or on other blockers of public sector productivity, what has the Chief Secretary to the Treasury actually done in his last eight months in office, or is he too comfortable with what the Prime Minister calls

“the tepid bath of managed decline”?

I thank the hon. Member for his question. My No. 1 ask is that he has another go at making better jokes in future. To answer the substance of his question, I agree with him that the state is not productive enough on a whole range of issues. He talks about civil service headcount, about Government offices and locations, and about working conditions. He could also talk about digital transformation. Frankly, we have an enormous amount of work to do, which will become evident through our spending review. It is something that is being taken very seriously not just by the Treasury, but from the Prime Minister downwards. I look forward to his reflecting on what we suggest is the answer to 14 years of failure from his party when it was in government.