The West Coast rail fiasco will probably cost us a lot more than £50m

Try doubling it.

"£50m at the very least" is the latest amount that the West Coast rail fiasco is expected to cost the tax-payer although the cost might be "very much larger".

It would seem the Public Accounts Committee has picked the lowest possible number it can think of (in the grand scheme of government money wasting £50m must seem insignificant to the PAC) thinking that people will say, “oh just £50m, that’s not so bad”, while they mutter in an undertone, hoping no one will hear, “it might be a bit more though”.

For a government that won an election on the importance of cuts, the bonfire of quangos and the sacking of unnecessary civil servants the manifest, barefaced disregard for any money other than your own is, at best, infuriating and at worst just depressing.   

The report from the PAC has said the aborted west coast franchise award was down to a "complete lack of common sense" from "blinkered, rushed" senior officials.

I honestly wish this were true. How simple it would be if this was just a case of lack of common sense, a one off mistake, something even the best of us are guilty of suffering of from time to time.

Sadly, this is a result of a far deeper problem. The truth is many people working for the DfT (as well as the rest of the government) simply do not care if the money is wasted.

As the government further alienates its staff, heavy handedly wielding its cost saving sword, blunders due to a complete lack of care are going to become more common. 

The reality is that we do not know and will probably never know just how much this whole unfortunate mess cost the tax-payer in the end.

I think a good rule to stick to when trying to find the bottom line in the chaos and confusion of any government screw up (there are almost certainly more coming at high speed from Birmingham) is to double any number proffered and hope that’s the worst of it.

Photograph: Getty Images

Billy Bambrough writes for Retail Banker International at VRL financial news.
 

Getty
Show Hide image

How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

0800 7318496