A treasury statement outlined that this would mean "engagement between the government and all parts of society including; the private sector, the public, voluntary/charitable organizations and experts, in order to obtain the best ideas from those most involved in and affected by public services".

The treasury said all central government departments should submit their initial plans to deliver their priorities before the parliamentary summer holiday, and that they had to "demonstrate that they meet a tough new set of criteria to deliver value for money. The criteria cover questions such as: is the activity being funded essential to the Government's priorities, does the Government need to fund the activity, and can it be provided more efficiently?"

A special committee, called a Star Chamber, would be set up chaired by the chancellor and the chief secretary to challenge every department's spending plans to ensure that they "deliver more for less."

Tax credits, social security (welfare payments) and public service pensions would all be comprehensively examined, said the treasury.

Prime Minister David Cameron gave a speech on Monday in which he said that paying the interest on the debt each year cost could rise to about 70 billion pounds (about 110 billion U.S. dollars) in five years time unless government spending was cut now.

There were dangers in delaying tackling the debt, said Cameron. "Around the world people and their government's are waking up to the dangers of not handling their debts."
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