“Wasteful duplication” in areas such as public sector asset management and homelessness to be tackled under new programme of reviews, says Treasury

The reviews, drawing in expertise from across the public and private sector, will be launched into four areas – bringing healthcare out of hospitals, homelessness, the provision of youth services and the management and maintenance of public sector assets.

The Treasury said: “Out-of-classroom youth provision, which clocks in at a bill of over £1 billion a year, for the government – will be reviewed to make a fragmented system spread across multiple departments and local government for each young person more efficient and effective.”

Additionally, work will investigate how departments take a "more preventive approach" to tackling homelessness – with over three quarters of government expenditure on homelessness going to temporary accommodation.

The Treasury observed that people sleeping rough can go on to use public services more than the average individual, at a cost of around £14,000 per person. 

It added: “Building on the cross-government work already ongoing, the review will identify how these public services such as the NHS can work better together to cut inefficient spending.”

Meanwhile, the Treasury warned that as healthcare has become “increasingly centred around hospitals” - community, primary care, mental health, social care and local services have been left working in silos, driving inefficiency and making the system harder for patients to navigate.

It said: “The healthcare review will highlight these challenges and establish better how the government can deliver the shift of healthcare back to communities in a sustainable way across the NHS.”

The Chief Secretary to the Treasury will lead the reviews, working with relevant Secretaries of State and Ministers as they identify wasteful spending in their departments, and make recommendations to improve value for money. 

The recommendations will inform the next Spending Review, which will take place in 2027. 

Chief Secretary to the Treasury James Murray said: “These reviews will scrutinise government programmes to ensure they improve people’s lives while rooting out wasteful spend from the public sector. We have a duty to taxpayers to make sure every pound of their money works as hard in government as the people who earn it.”

Lottie Winson