22-04-2025
Public sector organisations must rethink their approach to value for money (VfM), if they are to deliver better outcomes, finds a new report from the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Government Outcomes (GO) Lab, University of Oxford.
Published today, the Maximising Value for Money: Case Studies on Smarter Public Spending report examines two practical frameworks designed to strengthen financial decision-making in the public sector. The report draws on case studies from the London Borough of Redbridge and the Thames Valley Violence Reduction Unit (VRU). The research reveals how practitioners are adopting structured VfM frameworks to guide decision-making, ensuring greater transparency, accountability, and strategic resource alignment.
The London Borough of Redbridge case study highlights the effectiveness of the GO Lab-CIPFA VfM Toolkit. This framework combines structure with flexibility, helping to evaluate project costs and benefits while aligning initiatives with broader organisational goals. However, for the toolkit to be more widely adopted, it will require finance team support, ongoing improvements and integration into existing business case templates.
In contrast, the Thames Valley VRU case study explores the VfM life cycle approach, which integrates impact evaluation with financial assessments. This method helps tackle challenges related to baseline measurements, project planning and intervention effectiveness. It provides a clear, structured way to assess long-term cost-effectiveness through a pipeline of five key stages.
For VfM frameworks to be widely adopted across the public sector, CIPFA and GO Lab recommend that public sector organisations:
- Improve usability and accessibility: Tools must be intuitive and require minimal additional resources, enabling easy integration into existing processes.
- Strengthen alignment with established financial frameworks: VfM assessments should align with recognised frameworks, such as HM Treasury’s Green Book and the Magenta Book, to ensure consistency across the public sector.
- Encourage knowledge sharing and peer learning: Public sector practitioners must be encouraged to exchange best practices and refine methodologies based on real-world applications.
- Ensure continuous evaluation and adaptation: VfM tools must be regularly refined based on user feedback and evolving policy needs to maintain their relevance.
Jeffrey Matsu, CIPFA Chief Economist and report co-author, said:
“The importance of accessible VfM frameworks cannot be overstated. CIPFA’s report provides a clear roadmap for integrating VfM assessments into public sector decision-making. By simplifying their application and aligning them with established financial guidance, organisations will be better equipped to consistently deliver value for money and use resources efficiently.”
Mara Airoldi, University of Oxford GO Lab Director and report co-author, said:
“Our case studies underscore how VfM frameworks are integral not only to financial scrutiny but also to driving improvements in service delivery and resource allocation. The report argues that the continued refinement and integration of these frameworks will be essential for building a more transparent, accountable and efficient public sector.”
Notes to editor
A CIPFA spokesperson is available for interview. Please contact press@cipfa.org.
Read the Maximising Value for Money: Case Studies on Smarter Public Spending report
Access the GO Lab-CIPFA VfM Toolkit
About Government Outcomes Lab (GO Lab)
The Government Outcomes Lab is a research and policy centre based in the Blavatnik School of Government, University of Oxford. They were created as a partnership between the School and the UK Government and are funded by a range of organisations. Their role is to investigate how governments partner with the private and social sectors to improve social outcomes.
About CIPFA
The Chartered Institute of Public Finance and Accountancy is a UK-based international accountancy membership and standard-setting body. We are the only such body globally dedicated to public financial management.