Government shares further detail on Office for Value for Money following Committee report

• Read the Treasury Committee report
• Read the response from the Government
• Treasury Committee

In January, the Treasury Committee highlighted concerns about the cost-saving unit due to a perceived lack of resources, very short lifespan and high risk of duplication. 

In its response, the Government sets out a number of measures which address most of the Committee’s recommendations. These include detail about what the OVfM will do and several new commitments to transparency.  

The Committee welcomes these initiatives, which include criteria for judging the value of investment proposals and a plan for evaluating the temporary body’s performance. 

The Treasury confirms that the OVfM will have two initial areas of focus: first, governance and budgeting arrangements for “mega projects”; and, secondly, procuring short-term residential accommodation for groups such as prison leavers and asylum seekers. 

It’s also confirmed that the OVfM will not bring in any external consultants to support in their work, relying on around 15 full time employees. 

Chair comment

Chair of the Treasury Select Committee, Dame Meg Hillier MP, said: 

“In light of the concerns we raised, our Committee welcomes this additional information and acknowledges the signs of progress that the Office for Value for Money is up and running. The Government must maintain credibility on how it handles public money in such a tight fiscal context, therefore it’s critical that Parliament and the public can fully scrutinise the impact of this work. 

“As always with these initiatives, the proof of the pudding will be in the eating, but we will closely hold the Treasury to the letter and spirit of the transparency commitments made today.”

Further information 

• About Parliament: Select committees 
• Visiting Parliament: Watch committees 

Image credit: House of Commons