UK lawmakers expressed skepticism on Monday about the newly announced Office for Value for Money (OVfM), a body created by Finance Minister Rachel Reeves as part of her broader efforts to repair the public finances. The office, which is staffed with 12 full-time employees seconded from other parts of the central government, has been met with concerns regarding its potential effectiveness and its role within the wider government framework.
The Treasury Committee, which oversees Reeves’ work, questioned whether the OVfM would yield any substantial savings, pointing out that its functions seemed to overlap with other established public bodies, such as the National Audit Office (NAO), which employs nearly 1,000 staff. Committee Chair Meg Hillier, a fellow Labour Party member, voiced her doubts, labeling the office as “understaffed” and “poorly defined,” with a vague remit and no clear plan for assessing its success. Hillier expressed concern that the initiative might be little more than a “red herring.”
In defense, the Treasury asserted that the creation of the OVfM was necessary due to the long-standing issue of wasted taxpayer money. A spokesperson emphasized that the office would complement, rather than replace, existing government agencies and would focus on identifying inefficiencies, particularly where departmental spending overlapped.
Reeves introduced the OVfM in her first budget on October 30, setting government departments a target of 2% efficiency savings in the coming year, ahead of a more comprehensive spending review due in June. The initiative is part of her broader strategy to reduce public sector expenditure, though she has largely ruled out raising taxes. With rising government borrowing costs since her budget announcement, Reeves now faces increased pressure to meet her self-imposed targets for balancing day-to-day spending.
The Treasury Committee also criticized the lack of clarity regarding the OVfM’s cost, the specific areas of government spending it would focus on, and how it would evaluate the value of spending or investment projects. These unanswered questions have led to further doubts about the initiative’s overall efficacy.
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