Chief Secretary to the Treasury Darren Jones is expected to say the UK is “long overdue” a ‘reckoning with Government spending’ as he leads the spending review
A senior Treasury minister is set to declare that the UK is “long overdue a reckoning with Government spending”, as Labour faces the possibility of more cutbacks.
In a speech at the Institute for Government’s annual conference on Tuesday, Darren Jones, Chief Secretary to the Treasury, is expected to argue that a new approach is necessary to guarantee effective use of taxpayers’ money.
Mr Jones will state that the Government “will not settle for doing things the same and hoping for different results” as he oversees a spending review to determine departmental funding. This follows Labour’s accusation that the Conservatives have squandered taxpayers’ money, leaving a £22bn “black hole” in last year’s budget, which the opposition denies.
As Chief Secretary, Jones is in charge of evaluating ministers’ funding requests and has announced a “zero-based” approach, requiring justification for every pound spent by the Government. This could be a tough process, as ministers have been asked to find efficiency savings worth 5% of their budgets, and the rising cost of borrowing may necessitate even deeper cuts to meet the Government’s fiscal rules.
The alternatives – increased borrowing or further tax hikes – have been largely ruled out by Chancellor Rachel Reeves. . On Tuesday, Mr Jones is set to justify this strategy, stating: “We are long overdue a reckoning with Government spending, and a realistic appraisal of how we are using taxpayers’ money.”
Mr Jones is expected to emphasize the importance of data-driven decision-making in the spending review, highlighting how it will enable the government to “properly link choices about what outcome we are buying with every pound”. This announcement follows Sir Keir Starmer’s letter to ministers last week, urging them to prioritize the adoption of AI in their departments.
Additionally, Mr Jones will confirm the establishment of a National Infrastructure and Service Transformation Authority, which aims to “drive more effective delivery of infrastructure across the country” and boost growth.
