Waste in public services, including the NHS, is costing the taxpayer £60bn a year, shadow Treasury minister Philip Hammond is to tell the Policy Exchange think tank.
He will advocate stripping departments of their property portfolios, managing government real estate centrally and setting up an advisory board on productivity.
We would today be enjoying the same quality and quantity of public services - with a saving to the taxpayer of some £60bn per year
Central to his argument will be claims that private sector services achieved productivity growth of 20 per cent in the decade after 1997, compared with a 3.4 per cent decline in the public sector.
He will say: “We have modelled what would have happened if the public sector of our economy had delivered the same productivity performance as the private service sector in each year of that decade.
“The result is startling: we would today be enjoying the same quality and quantity of public services - with a saving to the taxpayer of some £60bn per year.
“That is the price we are paying, every year, for Labour’s failure to deliver public service reform.”
In what is billed as a major speech, Mr Hammond will build on the proposed austerity measures outlined by shadow chancellor George Osborne at the Tory conference in October.
The shadow public services productivity advisory board will feature a number of as-yet unnamed “very senior advisers with established credentials”.
One way of increasing efficiency will be to move all government owned property into central, publicly owned asset companies, Mr Hammond will say.
Departments will pay rent and the asset companies, using professional management, will be forced to squeeze as much as possible out of the government’s real estate assets.