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MPs have today condemned the “egregious waste” of over £6 billion of taxpayers money which was spent on projects launched by the last Conservative Government, which were then abandoned once Labour came to power, due to poor outcomes or changed priorities.
A report by the House of Commons Public Accounts Committee examined all the schemes dropped by Keir Starmer’s Government.
This included the last Government’s failed scheme to send asylum seekers to Rwanda which resulted in just four migrants being voluntarily deported at the cost of £290 million being written off.
Eight major road schemes were also scrapped at a cost of £472 million. These included a new tunnel on the A303 at Stonehenge, dualling of the A1 at Morpeth, Northumberland, the Arundel by-pass and other schemes in Great Yarmouth, Worthing, Southampton and Taunton.
Meanwhile the Ministry of Defence cut £ 1.6 billion from its budget because it was overspending on day-to-day operating costs.
Clive Betts MP, Labour Deputy Chair of the Public Accounts Committee, said: “We who serve in the public sector, both at the political and official level, are appointed as guardians of taxpayer money. At a time of such straitened financial circumstances for so many, we should never, ever be satisfied with time or money wasted at no benefit to the public. Yet here our report finds £6.6bn last year simply boiled off into the atmosphere as a loss, the victim of cancelled projects or changed priorities. Those who work hard to pay their dues should be rightly aggravated by this figure.”
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The report also highlights the high levels of waste at both the Department for Work and Pensions and HM revenue and Customs due to a failure to control fraud and error in the payment systems.
The MPs say the DWP has failed to control this for 36 years and HM Revenue and Customs for 20 years.
The current figure at DWP is £9.3 billion.
“The PAC believes this enormous figure has been accepted for far too long, and is not at all persuaded that such high levels can or should be regarded as inherent features of government systems. Action led by the Treasury should be taken to reduce it” the report states.
The Committee adds: “We are concerned that the 17 departmental groups had to write off close to £7 billion in total during 2024-25 for spending that did not achieve intended objectives. In addition to writing off £6.6 billion during 2024-25, the 17 departmental groups also made special payments outside their normal activities that totalled over £293 million. It is possible some of this expenditure may have been in the public interest, however it may also indicate where bodies did not exercise proper control or oversight on spending. We particularly consider losses incurred from cancelling projects after large sums have already been invested to be very poor value for money.”
A Treasury spokesperson said: “We will never tolerate fraud, error or waste – every pound of taxpayers’ money must be spent with care. That is why this government took the decision to end the Rwanda scheme and cancel unaffordable road projects to protect the public finances.”
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