The shadow public services productivity advisory board will feature a number of figures - yet to be named - described as "very senior advisers with established credentials".

A key Tory proposal is to move all government-owned property into central publicly-owned asset companies.

Government departments would then pay rent and the asset companies, using professional management, would be forced to squeeze as much as possible out of the government's real estate assets.

The Tories would also introduce greater competition within the public sector by allowing high-performing parts of it to bid to run other areas.

For example, a successful local authority planning department in one area could take charge of the planning responsibilities of a struggling council.

"What will matter to us is whether or not a successful outcome is delivered at an affordable price - not who delivers it," said Mr Hammond.