Abstract
<jats:title>Abstract</jats:title> <jats:p>This chapter examines the Treasury’s response to the fragmentation of UK governance over the past three decades, tracing its evolution from hierarchical control to a complex meta-governance role. It explores how New Public Management reforms—privatization, agency creation, and third-sector partnerships—have decentralized service delivery while paradoxically reinforcing central financial oversight. The chapter argues that the Treasury has struggled to adapt its control mechanisms to this fragmented landscape, contributing to short-termism, incoherence, and diminished public value. Through analysis of spending frameworks, contracting practices, and local governance dynamics, the chapter reveals how the Treasury’s reliance on traditional tools undermines its strategic capacity. It concludes by framing the UK as an ‘incoherent state’, where overlapping responsibilities, blurred accountability, and structural asymmetries challenge the Treasury’s ability to fulfil its meta-governance role effectively.</jats:p>