HM Treasury will run four cross‑government value‑for‑money reviews to identify and eliminate duplication in how services are funded, focusing on bringing healthcare out of hospitals, homelessness, out‑of‑classroom youth services, and the management and maintenance of public assets. The announcement was published on 19 January 2026. (gov.uk)
Chief Secretary to the Treasury James Murray will lead the work with relevant Secretaries of State and external experts. HM Treasury states the reviews are intended to improve outcomes while removing waste, with recommendations feeding into the next Spending Review planned for 2027. (gov.uk)
On healthcare, ministers highlight that a hospital‑centred model has left primary care, community health, mental health, social care and local services working in silos, increasing complexity and cost. The review will set out how to deliver a sustainable shift of activity back into communities across the NHS. (gov.uk)
On homelessness, the Treasury notes that over three‑quarters of expenditure is currently absorbed by temporary accommodation. Government research indicates a person who has slept rough uses public services at an average annual fiscal cost of about £14,200, reinforcing the case for prevention and better join‑up between agencies. (gov.uk)
On youth services, out‑of‑classroom provision costs government over £1 billion a year but is fragmented across multiple departments and local tiers. The review will examine options to streamline funding and reduce duplication around each young person. (gov.uk)
The assets and maintenance strand aligns with the government’s 10‑Year Infrastructure Strategy, which committed at least £9 billion in 2025‑26 for the health, education and justice estates, rising to over £10 billion annually by 2034‑35. SR25 also set out £24 billion between 2026‑27 and 2029‑30 to maintain and improve motorways and local roads. (gov.uk)
The reviews sit alongside an efficiency programme already embedded in spending plans. Spending Review 2025 confirmed almost £14 billion per year of technical efficiencies by 2028‑29 via Departmental Efficiency Plans overseen by the Office for Value for Money. Budget 2025 added further cross‑department savings of around £2.8–£2.9 billion in 2028‑29, rising to £4.9 billion by 2030‑31. (gov.uk)
Murray has served as Chief Secretary since 1 September 2025, following a Downing Street reshuffle. HM Treasury’s 2024‑25 annual report records that the Office for Value for Money recommended thematic reviews in the years between spending reviews; ministers accepted the recommendation, now being implemented through this programme. (gov.uk)
Policy Wire analysis: for NHS integrated care systems, local authorities and voluntary providers, this signals closer scrutiny of how budgets align to prevention and measurable outcomes ahead of the 2027 Spending Review. Expect attention on whether hospital‑based activity can be safely replaced by community care, and on reducing reliance on temporary accommodation through earlier interventions, with evidence requirements spanning health, housing and youth support.
Further operational detail will follow. At the time of publication, no separate terms of reference or timetable were linked from the GOV.UK announcement; departments are expected to work with the Treasury and external experts through 2026 so recommendations can be considered ahead of the 2027 review. (gov.uk)