What recession? US to build $1B embassy in London

Proposed US Embassy

Classy - Model of new US Embassy

According to this story, the US is going to build a new embassy in London. Current estimate is around $1B but we all know that government estimates are about as reliable as the TSA. I know construction costs are high, especially in London, but a BILLION dollars?

The State Department sought to play down the cost of security measures, noting the expense of London building work. But the price puts the London embassy above the US’s most fortified missions, including the Baghdad embassy, which cost $600 million (£390 million) but required a further $100 million of work on air conditioning, and the Islamabad embassy, still under construction, which has cost more than $850 million.

It also does not include the 17.5 per cent VAT demanded by the Treasury on all buildings in Britain and which the US has refused to pay.

How much do you want to bet that a) we end up paying the 17.5% VAT and b) the ultimate cost will be twice the estimate? Any takers?

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