THE TREASURY has directed government departments to cut waste and focus spending on policy priorities set by Keir Starmer.
This move is part of a broader effort to reform how the public sector operates.
In a statement, the Treasury said it would conduct a line-by-line review of every pound spent to ensure alignment with the agenda Starmer outlined last week and to guarantee value for money.
The review marks the first "zero-based review" of public spending in 17 years, according to the Treasury.
"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," chancellor Rachel Reeves said. "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."
The review will involve external expert panels scrutinising departmental budgets.
Departments have been advised through formal letters to make "difficult" decisions and eliminate spending that does not contribute to government priorities.
Details of the multi-year spending review are expected to be announced next year.
Reeves previously stated in October that her goal is to balance day-to-day spending with tax revenues by the end of the decade, setting strict limits for public service funding in the years ahead.
(With inputs from Reuters)
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