Sunday, 10 January 2010

Labour's Mismanagement of Big State Projects has Cost £22bn

Working with Taxpayers' Alliance research this morning's Independent on Sunday has published the extent to which the Labour government has mismanaged public spending projects. The costs total £22bn or £330 for every person in Britain.

Listed below are five of the worst examples of Labour wastefulness:

NHS National IT Programme
  • Budget: £2.3bn
  • Current cost: £12.6bn
  • Percentage overspent: 450%
  • Notes: Established in October 2002, under Alan Milburn, scheme to link 30,000 GPs in England to nearly 300 hospitals has been derided for huge costs and technical problems.
2012 Olympics
  • Budget: £2.4bn
  • Current cost: £9.3bn
  • Percentage overspent: 289%
  • Notes: The euphoria that greeted the decision to award London the 2012 Games has largely given way to concerns over spiralling costs.
Astute Class submarine
  • Budget: £2.5bn
  • Current cost: £3.8bn
  • Percentage overspent: 48%
  • Notes: The order for three of next-generation nuclear fleet submarines for the Royal Navy was announced in 1997 and subsequently increased to four. Only one has yet arrived.
Pensions Transformation programme for the Department of Work and Pensions

  • Budget: £429m
  • Current cost: £598m
  • Percentage overspent: 39%
  • Notes: An National Audit Office report subsequently criticised the delays and overspend.
A46 Improvement
  • Budget: £157m
  • Current cost: £220m
  • Percentage overspent: 40.1%
More examples and commentary in the Independent on Sunday.

Acknowledgement: ConservativeHome | LeftWatch | 10/01/10

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