He has called on the public to send him their very best ideas on how to get more for less from our public services.
From today, anyone can go to the new Spending Challenge Public engagement website and submit their ideas.
The Government believes that the people who use our schools, hospitals, transport systems and other public services are the best people to comment on how to get more out of our services, while tackling the country's record deficit.
Last month's Budget set out a plan to balance the books by 2014-15, including substantial reductions in public spending.
From today, the whole country is being asked to send in ideas during July and August, and to tell the Government what they think about the ideas that are put forward.
Alongside the website, the Chancellor and other Ministers will be taking part in seminars and visits across the country. They will be listening to the public's ideas in person and seeking views on how public spending should be cut, while protecting the vulnerable in our society.
So, have your say at: http://spendingchallenge.hm-treasury.gov.uk/.
