The Centre for Social Justice has branded government spending “wasteful” and advises that initiatives "lack clear objectives and have been poorly managed and monitored", in a report released today.

Government departments have been called on to make £81bn of spending cuts by 2014-15, but the CSJ says more money could be saved through efficient management and organised assessment.

The think tank advised the problem of money wasting is “inherent and long term”, and that successive governments have not done enough to ascertain whether expensive initiatives have been successful.

One example cited in the report was an investment of £1.2bn per year for tackling drug-use which has no data on whether it is proving successful. CSJ executive director Gavin Poole said: "Taxpayer’s money should tackle real problems and improve people’s lives. Too often there is limited evidence to show this is the case."

The CSJ, set up by Iain Duncan Smith, now secretary of state for work and pensions, calls for an Office for Spending Effectiveness to be set up to properly monitor policies and initiatives before they get the green light. This would work in conjunction with the National Audit Office and the Office of National Statistics to fully assess their value for money and efficiency.

Further recommendations for the coalition as it instigates billions of pounds worth of cuts are that clear objectives are outlined before spending goes ahead, the report states: “Objectives are often unclear and not prioritised, leading to excessive focus on operational targets and processes over outcomes.”