A Conservative-led review has confirmed £30 million of wasteful spending under the previous Labour administration, including a £27 million liability from a contractor signed off without due diligence and a £3 million overspend awarded to a firm already fined for bid rigging. The two councillors responsible have since been promoted to lead Labour's Westminster group. Westminster Conservatives say they are now restoring financial discipline after inheriting what they describe as an unprecedented financial crisis.
We spoke to Cllr Paul Swaddle, the Conservative Leader of Westminster City Council, to find out more.
One of the first things I did when forming this Conservative-led administration was order a full review of major contracts signed under Labour.
The results are in: £30 million of Labour waste confirmed.
Contract one: Geoffrey Osborne. Labour's Councillor Boothroyd signed off a contractor without proper due diligence in 2022. It cost Westminster £27 million to clean up after the company collapsed.
Signed off by the man who is now Labour’s shadow cabinet member for finance.
Contract two: Keltbray, Church Street. Labour's Councillor Ormsby signed off a £3 million overspend on a demolition contract with a firm that had already been fined for bid rigging by the Competition and Markets Authority. Fined, appealed, lost, paid more. Labour awarded them £3 million of taxpayers' money anyway.
- £27 million.
- £3 million.
- £30 million in total because of Labour’s culture of weak due diligence.
And what has Labour done since? Ormsby, who signed off the Keltbray overspend, is now Labour’s group leader. Boothroyd, who signed off the £27 million Osborne contract, is now their shadow finance lead.
Same Old Labour never learn: reward £30 million of reckless waste with Overspend Ormsby at the helm.
Labour tried to cover it up. But our contract review confirmed Labour wasted £30 million on dodgy contracts.
At the same time, Labour’s government is stripping £100 million of funding from Westminster.
Local taxpayers are paying twice for Labour’s reckless incompetence after they left this council in an unprecedented financial crisis.
Westminster Conservatives are now clearing up the mess and restoring financial discipline to deliver the value for money local people deserve.
