Fresh blow to Rachel Reeves as Commons probe delivers scathing verdict on her Office for Value for Money

RACHEL Reeves’ Office for Value for Money is a waste of cash, a Commons probe has found.

The Chancellor launched the quango last year to ensure every pound spent was benefitting taxpayers.

But the Treasury select committee has delivered a scathing verdict in a fresh blow to her handling of the public finances.

Its chairwoman, Labour’s Dame Meg Hillier, said MPs concluded it was “understaffed and poorly-defined” with “no clear plan to measure its effectiveness”.

She added: “All of which leads me to feel this initiative may be something of a red herring.”

Dame Meg also questioned what the quango will achieve which cannot be done elsewhere.

Other government areas already scrutinise spending.

The National Audit Office has an annual £106million budget and 960 staff — dwarfing the OfVfM’s 12 full-time civil servants.

Shadow Chancellor Mel Stride said: “Labour are more interested in vanity quangos than saving money. If they can’t make clear what this unit will do, and how, it should be abolished.”

But a Treasury spokesman hit back: “For too long, taxpayer money has been squandered and we are putting an end to it.

“This office’s role is additional to existing parts of government.

“It will draw on a range of expertise to help root out waste, including on where department spending may be overlapping.”