Leading MPs person questioned whether the caller Office for Value for Money volition really prevention the payer immoderate money.
In the October budget, Chancellor Rachel Reeves announced the caller section to assistance the authorities "realise the benefits from each lb of nationalist spending".
However, a study published by the cross-party Treasury Select Committee has heavy criticised the Office for Value for Money (OVM) and questioned however it would person "a meaningful interaction connected driving efficiencies successful departments".
The committee's chair, Labour MP Dame Meg Hillier, said she thinks the inaugural "may beryllium thing of a reddish herring".
Politics latest: Was Starmer snubbed by Trump?
However, Sir Keir Starmer's spokesperson said it is important and volition assistance "root retired waste".
In the report, MPs said the OVM's autarkic chair, accountant David Goldstone, a erstwhile main operating serviceman astatine the Ministry of Defence, is lone contracted for a twelvemonth and arsenic of December - 2 months successful - determination were lone 12 full-time staff, not the promised 20.
It was revealed successful November Mr Goldstone is being paid £950 a day from existing Civil Service budgets and is expected to enactment a monthly mean of a time a week, meaning helium volition person an yearly wage of £50,000. If the station was full-time, it would beryllium £240,000 for the year.
The committee besides said determination has been nary estimation of however overmuch the OVM volition cost, including the outgo of immoderate outer consultants it is considering using.
The MPs said the OVM is duplicating what different departments are already doing, with 7 examples of teams and processes wrong Whitehall ensuring nationalist spending decisions are worth for wealth - and said determination are more.
It pointed retired the National Audit Office is the government's statutory outer auditor that conducts regular value-for-money audits and has an yearly fund of astir £106 cardinal and much than 960 staff.
Mr Goldstone, who besides works connected the government's submarine delivery, HS2 and GB nuclear, told the committee successful December helium is "not going to duplicate different parts of government" but "will leverage them and enactment with them wherever we can".
Read more:
Jeremy Corbyn interviewed by constabulary aft pro-Palestine rally
Seven cardinal challenges Starmer faces with Trump
Please usage Chrome browser for a much accessible video player
The committee besides said determination is precise small accusation connected which departments the OVM volition enactment with, however it volition scrutinise their concern proposals and who is liable for evaluating the OVM's effectiveness. It has called connected the Treasury to people those details.
Committee seat Dame Meg said: "Our committee has concluded the Office for Value for Money is an understaffed, poorly defined organisation which has been acceptable up with a vague remit and nary wide program to measurement its effectiveness.
"All of which leads maine to consciousness this inaugural whitethorn beryllium thing of a reddish herring.
"The Treasury needs to stock acold much accusation astir what this tiny squad volition really execute for the payer which cannot beryllium done elsewhere. It indispensable besides beryllium transparent astir however it volition run and however it volition measure its effectiveness."
Sir Keir Starmer's spokesperson said the OVM is "important and taxpayers volition privation the authorities to guarantee payer wealth is spent appropriately".
He added it is bringing successful "expertise to assistance basal retired discarded and place areas wherever spending is wasteful and tin place savings".
Sky News has contacted the Treasury for a comment.