The recently established Office for Value for Money (OVfM) has faced significant criticism, with many questioning its necessity and effectiveness.
The body, launched by Chancellor Rachel Reeves as part of her November budget, is now under scrutiny for potentially being a redundant expense.
A Redundant Initiative?
The Treasury Committee, which oversees government spending, has raised alarms about the OVfM, calling it a ‘red herring.’
Their report suggests that the new office risks duplicating the work already performed by existing agencies like the National Audit Office.
The committee also highlighted serious concerns about the office’s lack of clear objectives, a defined budget, and adequate resources.
With just 12 full-time staff members, the office is described as “lightly resourced,” raising doubts about its capacity to make a meaningful impact.
Questions About Oversight and Effectiveness
The report also criticized the Treasury for not establishing a system to evaluate the OVfM’s work.
Dame Meg Hillier, chair of the Treasury Committee, expressed concerns about the office’s vague mandate and lack of transparency regarding its goals.
She called the initiative “an understaffed, poorly defined organisation” and questioned its ability to provide value for taxpayers.
Reeves’ Ambitious Claims and the Reality
When Reeves announced the creation of the OVfM, she portrayed it as an essential tool to ensure taxpayers get the most out of every pound spent on public services and infrastructure.
However, as more details emerged, the initiative has raised eyebrows.
For example, David Goldstone, the chair of the office, is reportedly paid £950 a day for working just one day a week, which equates to an annual salary of £247,000.
Such high compensation for a part-time role has further fueled the perception that the office may not be a good use of public funds.
A Setback for Reeves
This criticism comes at a difficult time for Rachel Reeves, following a turbulent week for the government.
Her recent budget led to further instability in the financial markets, with the pound taking a hit, growth faltering, and borrowing costs rising.
The Daily Mail even labeled Reeves one of the “Two Lame Ducks” alongside Tulip Siddiq, the former City minister who resigned amid corruption allegations, which she denies.
Treasury Responds Defensively
In defense of the OVfM, a Treasury spokesperson stated that the office’s role is to complement existing government functions.
They emphasized that it would help identify areas of wasteful spending, particularly where different departments may be duplicating efforts.
However, the committee’s findings suggest that much more needs to be done to justify the existence of this office and its costly budget.
