HM Treasury has launched cross‑government reviews to cut duplication and waste in public services, focusing on health, homelessness and youth provision. Announced on 19 January 2026 and led by Chief Secretary to the Treasury James Murray, the work aims to make taxpayers’ money work harder while improving outcomes. HM Treasury set out the plan in a press release published the same day. ([gov.uk](Link

The scope covers four strands: moving appropriate healthcare activity out of hospitals and into communities; strengthening prevention in homelessness; simplifying out‑of‑classroom youth services; and improving how the public estate is managed and maintained. The Treasury says youth provision alone costs over £1 billion a year but is spread across multiple departments and councils, creating overlap and inconsistent access. ([gov.uk](Link

Homelessness spend is heavily skewed towards emergency responses rather than prevention. According to the government, more than three quarters of public expenditure on homelessness goes on temporary accommodation, while people sleeping rough can generate around £14,000 a year in additional costs across services. The review will test how joint working can shift spend earlier in the cycle. ([gov.uk](Link

On healthcare, the government argues that hospital‑led models have left primary, community, mental health and social care working in silos. The review will look at practical steps to rebalance care sustainably, so patients can access support closer to home without being passed between services-reducing pressure on acute hospitals over time. ([gov.uk](Link

For youth services, the immediate gain is administrative: fewer fragmented pots and clearer accountability for each young person. Providers should expect a stronger push for evidence on what works, with efficient programmes scaled and weaker ones retired. That will favour organisations that can track outcomes credibly rather than those most adept at bidding for small, short‑term grants.

Public estate management is the fourth strand. Ministers point to long‑term funding set at the last Spending Review-at least £10 billion a year by 2034‑35 for health, education and justice infrastructure, plus £24 billion between 2026‑27 and 2029‑30 for motorways and local roads. The maintenance review is about using those budgets better, prioritising planned upkeep over costly emergency repairs. ([gov.uk](Link

The fiscal context is explicit. HM Treasury says plans set out at last year’s Spending Review aim to deliver nearly £14 billion of technical efficiencies by 2028‑29, with Budget measures adding a further £2.8 billion in 2028‑29, rising to £4.9 billion in 2030‑31. These new reviews are intended to broaden savings without cutting core services. ([gov.uk](Link

What does this mean for operators and local economies? Expect interest in community health contracts, prevention services linked to housing, and youth programmes that demonstrate measurable impact. Integrated care boards could explore re‑profiling towards out‑of‑hospital support, while councils may look to bundle housing, health and advice services so families get help once, not three times.

Governance will matter as much as policy. The Chief Secretary will lead the work with relevant Secretaries of State, with recommendations feeding into the next Spending Review in 2027. That timetable implies consultation, pilots and early delivery tests through 2026, before larger structural changes are locked for the multi‑year settlements. ([gov.uk](Link

The economic and human cases point in the same direction. Every outpatient check‑up handled in community clinics can free hospital time; every family moved from nightly paid accommodation into a stable tenancy reduces churn for schools and social workers. If the reviews cut hand‑offs and clarify who does what, providers get more predictable contracts-and taxpayers get better value.