The letter published today by the Treasury – from BAE Systems to David Cameron – is a bombshell that explains in stark outline why ministers pressed ahead with an order for two aircraft carriers despite fiscal constraints.
Alex revealed a month ago that the contract was written in such a way that cancelling one of the ships would still leave taxpayers with a similar bill to proceeding with both. Read more
I revealed last month that there were growing concerns within the rail industry that the £7.5bn order for new Hitachi trains to replace the ageing Inter-City fleet could be put on hold or cancelled.
Andrew Foster, former head of the Audit Commission, was asked in February (by Lord Adonis) to examine the case for the contract. Read more