Treasury advisers tasked with discovering authorities waste have recognized spending on lodging for folks resembling asylum seekers as their prime precedence.
The Workplace for Worth for Cash (OVfM), which has 15 members of workers and stories on to the chancellor, was launched in October.
However a Treasury response to a NEWSTORN Freedom of Info request revealed that as of final month the workforce had not began scrutinising any funding proposals.
Authorities paperwork launched on Tuesday confirmed the primary two areas it’s going to examine are authorities spending on short-term lodging and multi-billion pound so-called “mega initiatives” resembling HS2.
The OVfM is aiming to chop departmental spending by £4bn yearly beginning this yr.
Labour beforehand mentioned the “hit workforce” would make sure that “each penny of taxpayers’ cash is spent correctly”.
Considerations have been raised by each Conservative and Labour ministers in recent times about how a lot public cash goes on short-term lodging prices.
The Treasury says the Dwelling Workplace spent £2.3bn on accommodations for asylum seekers in 2022-23.
Additional authorities cash was spent on lodging for veterans, care leavers, survivors of home abuse, victims of recent slavery and people fleeing warfare.
The Institute for Public Coverage Analysis assume tank reported in 2024 that per asylum seeker, prices had elevated by 141% to £41,000 final yr – up from £17,000 in 2019-20.
Some in authorities query whether or not departments signing separate lodging contracts get the most effective worth.
The Native Authorities Affiliation (LGA), which represents councils in England, has mentioned that “uncoordinated” procurement of lodging has “pushed up native lodging prices”.
It says this has left “giant numbers of properties void in areas the place the demand from these cohorts is decrease than provide”.
The OVfM’s investigation into lodging prices will contain the Dwelling Workplace, Ministry of Housing, Ministry of Defence and Ministry of Justice.
The OVfM ‘s chair David Goldstone will be unable to take part within the investigation into the “mega initiatives”, due to his earlier senior roles with HS2 and the Submarine Supply Company.
Mr Goldstone, who was additionally concerned within the financing of the London Olympics and Parliament’s long-delayed Restoration and Renewal challenge, is being paid greater than £50,000 for a mean of 1 to 2 days every week’s work.
He was employed on a one-year contract as a direct ministerial appointment, which means the same old civil service recruitment procedures did not must be adopted.
He has mentioned his job was to provide “direct recommendation” to the Chancellor Rachel Reeves and Chief Secretary to the Treasury Darren Jones about how to economize in June’s Spending Evaluation.
Downing Road was compelled to defend his appointment after he was linked with a string of high-profile initiatives that went over finances.
Conservative Shadow Chancellor Mel Stride advised the NEWSTORN the workplace “has but once more been proven to be a whole waste of cash”.
He accused the federal government of “treating the taxpayer like a piggy financial institution”.
Earlier this yr, Parliament’s Treasury Choose Committee criticised the workplace as an “understaffed, poorly outlined organisation”.
Dame Meg Hillier, the Labour MP who chairs the committee, added that the workforce had been “arrange with a obscure remit and no clear plan to measure its effectiveness”.
The Treasury has mentioned the OVfM will ask each authorities division to search out no less than 1% effectivity financial savings, equal to round £4bn.
That might be included within the 5% of financial savings that Rachel Reeves has requested ministers to establish.
Paperwork printed alongside the Finances mentioned the workplace can be “endeavor value-for-money research in particular high-risk areas of cross-departmental spending and scrutinising funding proposals”.
Earlier this yr, NEWSTORN Information used a Freedom of Info request to ask what particular high-risk areas and funding proposals the workforce had checked out.
The Treasury’s response mentioned it didn’t maintain any details about particular funding proposals as a result of the workplace would “determine which funding proposals to scrutinise after receiving preliminary proposals from departments as a part of the Spending Evaluation”.
One key space the workplace is anticipated to take a look at is the place a number of authorities departments may very well be doubling up on work.
However it has been urged that the OVfM might itself be responsible of duplication.
In a report printed in January, the Treasury Choose Committee famous that the federal government already “makes use of a variety of present frameworks to safeguard worth for cash”.
