Chancellor vows to wield 'iron fist against waste' as government spending to be scrutinised in major budget review

9 December 2024, 22:32

Rachel Reeves
Rachel Reeves. Picture: Alamy

By Emma Soteriou

Every pound of government spending will be scrutinised in a major budget review, Chancellor Rachel Reeves has warned.

Listen to this article

Loading audio...

Ministers have been told that they must find more savings in their departments, with Ms Reeves vowing to wield an "iron fist against waste".

Departments will be told to brace for "difficult" spending decisions in a bid to restore trust in the government's handling of public finances.

Every pound of government spending will face a "line-by-line review" involving external finance experts from banks and think tanks in order to ensure it represents value for money, the Treasury said.

It comes as Ms Reeves is set to launch the next round of government spending on Tuesday, with her set to warn departments that they "cannot operate in a business-as-usual way when reviewing their budgets for the coming years".

Read more: Britain can't boost defence spending without making cuts in other areas, Rachel Reeves warns

Read more: Rachel Reeves tells businesses no more tax rises as she defends budget at CBI conference

Keir Starmer sets out six milestones in 'plan for change'

She will insist that areas focused on the PM's "plan for change" will be prioritised, including targets to improve living standards across the country and building 1.5 million homes.

Ms Reeves 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."

More Latest News

See more More Latest News

Exclusive
Corby steelworks pictured in 1981

Families in former industrial town call for probe into rare child cancer after botched clean-up of steelworks

The stabbing happened on Ramsden Street in Huddersfield.

Man, 20, charged with murder after 16-year-old boy stabbed to death in Huddersfield

Donald Trump's 10% tariff on UK products has officially come into force

Trump tariffs come into force as global stock markets plunge deeper into the red

File photo dated 19-05-2024 of Manchester City's Kevin De Bruyne lifting the Premier League trophy with team-mates.

Kevin De Bruyne to leave Manchester City, as Pep Guardiola calls him 'one of greatest midfielders to play in England'

Stock markets plummeted on Friday

Starmer 'pushing for Trump royal visit this year' as UK bids for US trade deal - after tariffs spark turmoil in markets

Tom Howard

British tourist killed after being struck by boulder on trek through Himalayas

In this photo provided by the Ukrainian Emergency Service, a car burns following a Russian missile attack that killed more than a dozen people, including children, in Kryvyi Rih, Ukraine, Friday, April 4, 2025. (Ukrainian Emergency Service via AP)

Russia kills 16 people including three children in missile strike on Zelenskyy's home town, with dozens wounded

Travel influencer Mykhailo Viktorovych Polyakov, 24, made an illegal visit to North Sentinel Island

Tourist who left Coke for world's most isolated tribe 'could have wiped them all out' - and police 'can't go collect can'

Club house covered in red paint as members of group Palestine action caused damage to the Trump owned site of Trump Turnberry Golf Club in Scotland.

Police arrest man, 33, and woman, 55, after Donald Trump's Scottish golf course vandalised with red paint

Man, 23, who gouged out pensioner's eyes before beating him to death with his own walking stick locked up indefinitely

Man, 23, who gouged pensioner's eyes out before beating him to death with his own walking stick locked up indefinitely

The FTSE 100 plummeted on Friday

UK stock market plunges amid Trump tariff chaos as FTSE 100 suffers worst trading losses in five years

The scene at Beckenham Place Park

London park evacuated as police search for teenage boy who went missing while swimming in lake

Tommy Robinson pictured last year

Tommy Robinson in bid for freedom with appeal against contempt of court jail sentence after libelling teen refugee

Layla Allen died at the scene

'Cherished beyond words': Family pay tribute to 'shining light' 13-year-old killed in Merseyside house fire

Russell Brand

Russell Brand breaks silence after actor and comedian charged with rape and sexual assaults

White House weighs in to support ‘censored’ anti-abortion activists in Britain

White House looking to support ‘censored’ anti-abortion activists in Britain