Whoever forms the next government will have ambitious plans for improving public services and the performance of the state, but will face challenging economic and fiscal circumstances. That means that, more than ever, how every pound of public money is spent will matter for whether the government can deliver on its promises.

But too often, our Commission on the Centre found, government spending doesn’t match up to an overarching government strategy. The cabinet doesn’t set out a coherent vision, public spending decisions are made in isolation, and - as a result - ministers find budget allocations become a straitjacket that restricts their ability to deliver.  

After the next election, the prime minister must set out a set of Priorities for Government defining what his government is trying to achieve. Those priorities should form the strategy underpinning a multi-year spending review. Groups of cabinet ministers should work together to make joint bids for each of the government’s top priorities – or ‘missions’. Spending allocations should be decided for as long as practical to provide greater certainty. 

The next government will need to decide whether it has sufficient time to run a comprehensive, multi-year spending review in time to set budgets this autumn. It would be wise to first conduct a one-year spending round to address urgent issues. This would buy the government the time to conduct a full strategic comprehensive review, to conclude in 2025, that is more likely ultimately to achieve its objectives.