Rachel Reeves’ value for money tsar to be paid £950 a day

The government’s new value for money tsar will be paid a day rate of £950, the equivalent of a £247,000 annual salary.

David Goldstone, who will take up the position of chairman of the new Office for Value for Money, will effectively be on a higher pro-rata salary than the prime minister.

Rachel Reeves announced during her Budget speech that Mr Goldstone was being appointed to “help us realise the benefits from every pound of public spending".

A statement from the Treasury later confirmed he will advise the chancellor on decisions ahead of the government’s upcoming spending review.

“This will include conducting an assessment of where and how to root out waste and inefficiency, undertaking value for money studies in specific high-risk areas of cross-departmental spending, and scrutinising investment proposals to ensure they offer value for money,” the Treasury said.

Mr Goldstone has been linked to a series of projects and departments which have spent huge amounts of taxpayer cash, including HS2 and the London Olympics.

Delivery of the 2012 games, for which Mr Goldstone oversaw the funding, cost £9.35bn, almost four times the initial estimate.

Mr Goldstone was criticised by the Commons public accounts committee after taking a £168,000 bonus on top of his £311,000 salary for overseeing the long-delayed and hugely costly renovation of the Palace of Westminster.

He was chief executive of the Houses of Parliament Restoration & Renewal Delivery Authority for four years before standing down in August.

He has role as the Treasury’s board representative for the HS2 high speed rail project, which he took up in June, is a bid to stem further cost overruns. The project is currently almost twice over budget, having had a significant amount of the original planned line cut.

Mr Goldstone will be in his new post for a year and is expected to work an average of one day a week, picking up the £950 day rate - equivalent to £247,000 for a year of full-time work. Sir Keir Starmer is paid £167,000 in his role as PM.

Mr Goldstone will be supported by a team of 20 civil servants in the Treasury.

He 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.”

Chief Treasury secretary Darren Jones defended Mr Goldstone’s pay, saying it represents “very good value for money”.

He told Times Radio: “One of the things that we’ve inherited from the last government was a bit of an excessive rate of daily rates for advisors to external advisors to government.

“And this is very good value compared to some of the roles that we’ve inherited. And the office of value for money is led by David [Goldstone], who has a lot of experience working on big infrastructure projects and big delivery projects, but is supported by a group of talented officials who are already employed by the Treasury.”

Times Radio the government’s value for money tsar’s £950 a day pay is “very good value” for money:

It is an independent role and he is not an employee of the Treasury.