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Telegraph

Replace spending review with AI, says Blair Institute

The spending review should be scrapped and replaced with modern technology, according to a report by the Tony Blair Institute. A new report by the think tank argues that the review wastes huge amounts of money across Whitehall, and advocates for technology instead. The spending review is the process the Government uses to set all departmental budgets for future years, covering services from the NHS to schools and transport. Defence and the NHS emerged as the big winners from the review unveiled by Rachel Reeves earlier in June, while other departmental budgets will be squeezed. Departments spend thousands of pounds preparing submissions for the spending review and the money is then allocated based on subjective judgment, the institute said. It means ineffective projects go on being funded, leaving less money available for the public's priorities. 'We cannot afford to operate like this' AI tools and shared dashboards that allow money to be tracked in real time to counter these problems should be used instead, the report argues. It also claims many departments face structural problems that prevent technology from being used. It recommends that the Government instead reviews how public money is being spent every two years, to allow it to continue planning for the medium term. Dr Laura Gilbert, lead author of the report, said: 'When a company spends money, it understands that that money is limited. If what you're spending the money on isn't working, the company should demand for you to stop and spend it on something else that drives the outcomes you want. 'The way the traditional spending review process is set up prevents this level of accountability in government. As a result, Whitehall can waste huge amounts of money – our money – on things that don't work, and keeps doing it again. 'We cannot afford to operate like this when the technology to fix it is there. We owe it to taxpayers to make sure every pound counts,' said Dr Gilbert. 'This isn't about spending more or less. It's about spending better – on what works, and on what improves people's lives.'