Bankers are to review state spending as part of a push to bring the private sector “into the heart of government”.
External oversight is to be incorporated into the first line-by-line spending review of government departments in 17 years.
Under plans announced by the Chancellor Rachel Reeves “every pound” of government spending will be interrogated to ensure it represents value for money.
Departments will be expected to find savings and “efficiencies” in their budget as Ms Reeves said she wishes to remove waste in the public sector.
New “test-and-learn teams” will be put into public services across the UK to “experiment and innovate” in an effort to “fix the public sector’s biggest challenges”.