Labour's new 'Value for Money Tsar' to be paid £50,000 for working one day a week
1 November 2024, 08:14 | Updated: 1 November 2024, 08:38
The head of the government's new Office for Value for Money will be paid £50,000 a year for working one day a week.
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David Goldstone will "help us realise the benefits from every pound of public spending," Chancellor Rachel Reeves said, announcing the appointment on Wednesday.
Mr Goldstone, who also works with HS2 Ltd and oversaw government investment for the 2012 Olympics - both of which went well over budget - will be paid £950 per day for his work.
He will work one day per week as a monthly average - working out pro rata at the equivalent of £250,000 per year.
Mr Goldstone will be in post for a year.
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His job makes him responsible for providing advice to the Chancellor and Chief Secretary to the Treasury to save money by reforming systems and improving policy outcomes.
It is an independent role and he is not an employee of the Treasury.
As well as being a non-executive director of HS2 LTD, Mr Goldstone works with the Submarine Delivery Agency.
He was previously chief executive of Parliament's Restoration and Renewal Delivery Authority and chief operating officer at the Ministry of Defence.
Mr Goldstone also oversaw the Government's £9.3 billion investment for the 2012 Olympics, including the Olympic Park venues and infrastructure.
Appearing on LBC's Nick Ferrari at Breakfast, Treasury minister Darren Jones defended the appointment and insisted the pay was "competitive".
"The rate of return for the improvements that we will make from looking at these areas of spending will be far, far greater," he said.
"It is right that we pay people for their time. We can't expect people to work for free. That is an important way in which we do things in this country.
Watch again: Nick Ferrari is joined by Chief Secretary to the Treasury Darren Jones | 1/11/24
Ms Reeves was not aware of Mr Goldstone's salary when asked by Nick on Thursday.
But 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," Ms 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 new body's mandate to clamp down on public sector waste.
Conservative leadership favourite Kemi Badenoch weighed in on the appointment, expressing scepticism over the need for the Office for Value for Money.
She told Nick: "We are constantly trying to solve problems with more clangers, more bureaucrats, more politicians. This is not how you deliver growth.
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"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."
On his appointment, Mr Goldstone said: "I am honoured to have been appointed by the Chancellor and Chief Secretary to this important role.
"I look forward to working within government over the coming year to bring renewed focus to ensuring we deliver maximum value for the public in how money is spent."
