Is Test and Trace really the most wasteful public spending programme ever?
A thread…🧵
A thread…🧵
The @CommonsPAC report on the value for money and effectiveness of the £37bn Test and Trace programme is pretty damning.
& former top Treasury civil servant @nickmacpherson2 says it “wins the prize for the most wasteful and inept public spending programme of all time”...2/
& former top Treasury civil servant @nickmacpherson2 says it “wins the prize for the most wasteful and inept public spending programme of all time”...2/
But is this verdict justified?
Or have there, in fact, been more egregious squanderings of taxpayers’ money in the past?
What could possibly compete?
Well, here’s some contenders...3/
Or have there, in fact, been more egregious squanderings of taxpayers’ money in the past?
What could possibly compete?
Well, here’s some contenders...3/
The NHS IT system
- Commissioned by the Blair government in 2002.
- Supposed to deliver full digital integration by 2005.
- Massive cost overruns and technical problems.
- Scrapped in 2011, with total cost estimates of £20bn. £24bn in today’s money...4/
- Commissioned by the Blair government in 2002.
- Supposed to deliver full digital integration by 2005.
- Massive cost overruns and technical problems.
- Scrapped in 2011, with total cost estimates of £20bn. £24bn in today’s money...4/
Public service pension reform
– Coalition in 2010 made public sector pensions less generous, but let workers less than a decade from retirement stay on old system
- Was ruled age discrimination in court in 2018.
- Estimated cost to taxpayer of rectifying: £17bn...5/
– Coalition in 2010 made public sector pensions less generous, but let workers less than a decade from retirement stay on old system
- Was ruled age discrimination in court in 2018.
- Estimated cost to taxpayer of rectifying: £17bn...5/
Millennium Dome
– Inherited, but greatly expanded by Blair government after 1997.
- Given away to property developers in 2001 after sale attempts fell through.
- Total construction cost of £780m, or £1.3bn today....6/
– Inherited, but greatly expanded by Blair government after 1997.
- Given away to property developers in 2001 after sale attempts fell through.
- Total construction cost of £780m, or £1.3bn today....6/
Concorde
– Anglo-French supersonic jet project forged in 1962 under Harold Macmillan.
- Not a single aircraft ever commercially sold - had to be foisted onto BA and Air France by ministers
- More than £1.2bn spent on development by UK and France, around £10bn today...7/
– Anglo-French supersonic jet project forged in 1962 under Harold Macmillan.
- Not a single aircraft ever commercially sold - had to be foisted onto BA and Air France by ministers
- More than £1.2bn spent on development by UK and France, around £10bn today...7/
Gas-cooled nuclear reactors
– Technology commissioned by Harold Wilson government in 1960s
- Massive delays & none sold for export.
- Total construction costs some £95bn today.
- Plus tens of billions of pounds of decommissioning costs still on public balance sheet...8/
– Technology commissioned by Harold Wilson government in 1960s
- Massive delays & none sold for export.
- Total construction costs some £95bn today.
- Plus tens of billions of pounds of decommissioning costs still on public balance sheet...8/
In truth it’s not easy to rank failed public-sector projects in terms of wastefulness, given the costs are accumulated over many different time periods and (some) have offsetting benefits...9/
Nevertheless, test and trace may be close to the top of the league table if its performance really is as weak as the @CommonsPAC suggests...10/
More important than ranking is learning lessons.
What unites all these failed projects is that they were very large scale, when, in many cases, more modest plans would have been appropriate for achieving the goals....11/
What unites all these failed projects is that they were very large scale, when, in many cases, more modest plans would have been appropriate for achieving the goals....11/
Government ministers have tended to prefer the big and headline-grabbing shiny new project over the incremental improvement.
Think of the "world-beating test and trace" boasts...
...12/
Think of the "world-beating test and trace" boasts...
...12/
Many were also started from scratch, rather than building on what was already available - and also centralised.
Echo of this with Test and Trace, which set up entirely new call centres, rather than utilising local government public health teams....13/
Echo of this with Test and Trace, which set up entirely new call centres, rather than utilising local government public health teams....13/
Another common theme is that ministers and civil servants often ploughed on despite rising costs & mounting problems, sometimes refusing to even hear warnings.
They doubled down rather than cutting losses...14/
They doubled down rather than cutting losses...14/
Something to think about in light of the apparent ditching of the “strategy” part of industrial policy by this government…15/
https://twitter.com/BenChu_/status/1369597894844628999?s=20
More here for @Independent (including some very spicy judgements on past fiascos from @ProfJohnKay and @PJTheEconomist )👇
ENDS
independent.co.uk/news/uk/politi…
ENDS
independent.co.uk/news/uk/politi…
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