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Chancellor ‘doesn’t know’ salary of new chairman tasked with ensuring government ‘value for money'
31 October 2024, 09:57
Chancellor can't tell Nick how much the government's spending czar is paid
Chancellor unable to confirm salary of new Office for Value for Money Chairman, raising transparency concerns over government’s latest anti-waste initiative.
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In a lively interview on LBC's Nick Ferrari at Breakfast the day after her Budget announcement, Chancellor Rachel Reeves faced a grilling on the pay of David Goldstone, the newly appointed Chairman of the Office for Value for Money (OVfM).
Despite repeated probing, Reeves was unable to say Goldstone's salary, sparking questions about transparency within the new office tasked with rooting out government waste.
Nick Ferrari opened the conversation by confirming whether Goldstone’s role was a paid one, to which the Chancellor replied affirmatively. "Yes, he is paid for doing that role, and the role is to get value for money for government spending," Reeves said, stressing the need to address "too many examples of money wasted."
Nick, unsatisfied, pressed for specifics. "Chancellor, how much are we paying David Goldstone?"
Reeves admitted she did not have the figure on hand. "I can get back to you with the precise salary figure," she responded. "I don't know the salaries of everyone who works across government."
She defended Goldstone's appointment, citing his experience with high-profile projects. "We've brought him in to get value for money for the taxpayers," Reeves said. "He was brought into HS2 this year to help get a grip on the overspends there. He was involved in the Olympics and Paralympics."
Nick challenged this, pointing out that the Olympics went "three times over budget." The exchange cast a spotlight on the government's approach to fiscal oversight, especially in light of the OVfM's mandate to clamp down on public sector waste.
Conservative leadership hopeful Kemi Badenoch weighed in on the appointment, expressing scepticism over the need for the Office for Value for Money.
Speaking to Nick Ferrari, she said, "We are constantly trying to solve problems with more clangers, more bureaucrats, more politicians. This is not how you deliver growth. We should be able to determine value for money within the civil service itself. If they cannot do that, then I have no confidence that an Office for Value for Money will know how to do that. Either that expertise should already be in the Treasury. We do not need another quango."
Kemi Badenoch responds to Labour's launch of the OfVM
Chancellor Rachel Reeves has faced criticism over the tax rises introduced in her Budget.
Although Labour has championed protecting "working people," the measures – particularly the increase in employer National Insurance Contributions (NICs) – are likely to impact wages and job security.
According to the Office for Budget Responsibility (OBR), as much as 76% of the NICs hike cost could ultimately fall on employees, leading to a reduction in real wages and, potentially, job losses equivalent to around 50,000 average-hour positions by 2027.
While Ms Reeves defended her decision, pointing to a necessary £22 billion shortfall in the public finances that had to be addressed, she acknowledged the toll on private sector wages and economic growth.
This heavy tax burden, projected to peak at 38.3% of GDP by 2027-28, is the highest in the post-war period, signalling a significant shift towards increased public spending under Labour’s new fiscal approach.
Shadow Chancellor Jeremy Hunt and economic analysts, including the Institute for Fiscal Studies, have voiced concerns that the tax increases could leave families facing higher living costs, inflation, and interest rates. Nevertheless, the International Monetary Fund (IMF) offered tentative support, endorsing the long-term vision for sustainable revenue raising and public investment, reflecting international backing for the Chancellor’s ambitious spending plans.
