Defence Secretary John Healey has cancelled a £5million Ministry of Defence contract that sponsored "Formula Woke" electric rally car mudflaps - after a report revealed military budget funds were being diverted from front-line troops.
The contract with McClaren, which placed the MoD's logo on electric rally car mudflaps, was terminated following a line-by-line review of public spending ordered by Chancellor Rachel Reeves.
The Defence Secretary was reportedly "speechless" upon discovering the expenditure, which was signed off by Conservative ministers last year.
The contract was part of a partnership that provided MoD staff with free tickets to rally events and was meant to facilitate "knowledge and skills transfer" for military electric vehicle development.
The - now cancelled - contract was part of a partnership that provided MoD staff with free tickets to rally events
British Army
The "Formula Woke" nickname stemmed from the competition's requirement for teams to include one female driver, with races held in areas threatened by climate change.
The racing series - launched in 2021 - managed to hold only four races out of a planned ten before being cancelled last year.
Ministers had claimed McClaren would "bring their world-class expertise from the racetrack into a number of defence projects".
Internal documents revealed desperate officials sent a "call to action" email begging MoD staff to submit projects to the scheme.
A defence source said: "John Healey was speechless when he learned Conservative ministers had signed off millions of pounds of taxpayers' money on this nonsense."
"It's just another example of the eye-watering Tory failures that Labour ministers have been dealing with in the MoD," the source added.
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"No more woke racing cars or private VIP helicopters. This money should be spent on our front-line forces."
The move follows Labour's earlier decision to axe a £40million private helicopter travel contract signed by Rishi Sunak.
Healey has also cut £300 million from the MoD's spending on external consultants since taking office.
The early cancellation of the McClaren contract is expected to save up to £2million, which will be redirected to funding front-line combat capabilities.
Defence sources indicated the savings could be used to purchase essential equipment such as battlefield drones.
Healey has also cut £300 million from the MoD's spending on external consultants since taking office
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"We are cutting waste to fund our front line. We are serious about scrutinising every budget line and redirecting every available pound to our frontline troops," a source said.
Officials are likely to uncover further examples of wasteful spending as the review continues.
"We want to get more of our funding to our people and the kit they need to fight, and away from any schemes that don't deliver for Britain's national security."
An MoD spokesman said: "It's right that we scrutinise every pound of taxpayer's money and we can confirm that we have ended this contract."
"We will continue to prioritise spending so that we deliver for defence and ensure value for money," the spokesman added.
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