Chancellor’s second-in-command Darren Jones is leading a spending review that will determine how much money government departments will get over the coming years
Government spending is long overdue a “reckoning”, a top Labour minister has warned.
Chief Secretary to the Treasury Darren Jones used a speech to argue a different approach is needed to ensure taxpayers’ cash is spent effectively. It comes as the Chancellor’s second-in-command leads a spending review that will determine how much money departments will get over the coming years.
Keir Starmer has also warned the Treasury would be “ruthless” in its approach to public spending – raising fears of wider cuts to public services. Speaking at the Institute for Government think-tank, Mr Jones indicated departments will have to meet a “savings and efficiency target” of at least 5% as part of the work.
He said: “We are long overdue a reckoning with government spending and a realistic appraisal of how we’re using taxpayers’ money.”
Mr Jones added: “We will no longer just negotiate what top-ups to existing budgets departments will get but we will scrutinise every pound of existing budgets first.”
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As the government seeks to cut the welfare bill, the minister also said proposals will soon be published on reforming health and disability benefits.
He said as part of the reforms the government will “re-consult” on proposals to change a key disability benefits test – the Work Capability Assessment. “We intend to deliver the full level of savings in the public finances forecast,” he added.
Last week the High Court ruled the Tory-era consultation on the reforms was unlawful in a victory for disability campaigners who brought the case against the Department for Work and Pensions.
On Tuesday evening Rachel Reeves also jetted to the World Economic Forum in Davos to bang the drum for more investment into the UK. The Chancellor is expected to meet the heads of major international banks during her two-day visit to the Swiss town and will be joined by Business Secretary Jonathan Reynolds.
Ms Reeves earlier told the MPs the spending review will conclude on June 11 – before it is presented to the House of Commons. She has previously warned it will require government departments to find efficiency savings amounting to 5% of spending, acknowledging this will mean “difficult” decisions.
