Britain tells departments to focus spending on Starmer's priorities

UK Government to Align Spending with Starmer's Priorities

LONDON (Reuters) - Britain's finance ministry said it would ask government departments to cut waste, including spending that does not align with policy priorities, as Prime Minister Keir Starmer seeks to overhaul how the public sector works.

The Treasury said in a statement that every pound the government spends would be subjected to a line-by-line review to ensure it was being spent on delivering the agenda that Starmer set out last week, and giving value for money.

The last time government departments were asked to undertake a so-called 'zero-based review' of public spending was 17 years ago, it said.

"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," finance minister Rachel Reeves said in the statement.

"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."

Departmental budgets will be scrutinised by panels of external experts and letters had been sent to each department advising they should take "difficult" decisions to stop any spending that does not contribute to a government priority.

The government is due to announce the details of its multi-year spending review next year.

Reeves said in October that she was aiming to balance day-to-day spending with tax revenues by the end of the decade and she set tight limits for spending on public services in the coming years.

(Reporting by Alistair Smout; Editing by William Schomberg and William James)