Resolution Training

Peace Foundation demonstrates the cost of conflict is placing a huge burden on the economy and challenges the Government to invest in preventative services

March 21, 2013 | Nick Taylor

The day of the twentieth anniversary of the Warrington bombing coincides with the Chancellor’s budget statement and the charity foundation set up in memory of the two boys killed in the incident is challenging: Government to invest as it releases a report that shows that the economic cost of conflict is off the scale and unaffordable.

The Foundation works with people pre, during and post violent conflict and over 18 years has developed interventions to prevent violent extremism and promote good relations in communities nationally and internationally.  The Foundation works with victims of politically motivated violence, and acts of terrorism and advises and guides government at national and international level.

The Foundation for Peace is marking the twentieth anniversary of the Warrington bombing on the day of the budget by releasing a report that shows that the price of extremism and the consequences to the economy are off the scale!  The long-term financial burden rests with health and social welfare providers and the ‘resilience’ risk by default with business and local authorities.    

The Foundation’s ‘cost of peace and the price of extremism’ report launched at a conference to mark the twentieth anniversary of the bombing shows that a single incident costs multi millions in impact on the UK economy and infrastructure and business.  It also demonstrates the long-term costs to society generated by perpetrators and victims of incidents at home or abroad.

The charity believes that there is little authoritative research and significant costs are ‘hidden’ within the economy and are a huge burden on public finance.  The charity also believes that with targeted and limited investment, the risk mitigation is increased and costs reduced.

Nick Taylor, Chief Executive of the Foundation for Peace welcomed the report: “The human cost of political violence and conflict is incalculable and almost infinite.  The economic cost is also off the scale and unaffordable in terms of the consequences to social, welfare and health care providers.

“The scale of incident intervention is astonishing, as is the price tag attached.  With the present challenged economy, we cannot afford political violence, in human terms or in terms of our economic wellbeing. What we can afford is to fund appropriate and effective preventative, responsive and resolution services – the type of services embodied in the Foundation’s programmes.

 “Today, on this poignant anniversary as politicians gather with their minds focused on our hard-pressed economy I am calling on this Government to examine our report findings and to take action to commission work and investment that will save significant health, social, welfare and security costs.”

The report includes case studies showing the impact of the 1996 Manchester bombing – the 7thJuly London attacks as well as demonstrating the impact of perpetrators and the cost to support victims.  The report will be published at a conference to be held in Warrington at the international Tim Parry and Johnathan Ball Peace Centre addressed by the new Victims Commissioner, the Baroness Newlove and speakers such as Matthew Taylor CEO of the RSA and Dame Helen Reeves former CEO of Victim Support.

To find out more about the work of the Foundation and this event log onto or follow us at @peacecentre or for this event hashtag #peace20

A copy of the report is available for download click here

Snapshot of some of the figures includes:

Impact on Infrastructure and Businesses

Case Study: The 1996 Provisional Irish Republican Army (PIRA) attack on Manchester City Centre: 1,200 buildings damaged over an area of 1.2 million m2.

Key streets were closed for up to eighteen months Short-term costs: road repairs and building control safety work – £3-4m £83m of public sector funding £500m from private sector funds 672 businesses displaced Reduced retail turnover – £50m Cost of business relocation – over £5m

Case Study: The 7/7 London Bomb attacks in 2005. £2 billion taken from the UK economy as a result of the impact on transport, high street spending and extra security costs Cost of the incident to the UK tourism industry – £300 million Cost to repair and replace London underground infrastructure – £22.4m Transport for London – over £700,000 in lost congestion charge and £175,000 in lost underground fares

Impact of Perpetrators – between 2002 and 2012

An average of 207 arrests per annum on terrorist charges.

During the year 2011/12, 18 individuals convicted under terrorism legislation – of those 17 received custodial sentences at a cost of approx £2.2m over the next five years.  The costs of the Counter Terrorist Division of the CPS 2005 and 2009 are over £22m. Cost of the 118 terrorist or extremist prisoners in UK (March 2012) is £7.2m pa

Case Study: Abu Hamza extradition to the United States is £165,500.  Attempted removal of British citizenship from Abu Hamza – £151,000 – Between 2002 and 2012 – £413,607 in payments to defence solicitor for legal proceedings (not all legal aid)

Case Study: October 2012 terror suspects’ extradition to the United States Total legal costs for four suspects – £305,000

Impact on Victims

Average cost of an A&E visit – £108. If all 700 people injured in the 7 July 2005 London bombing visited A&E, the costs would be around £75,600 (many will have needed protracted further treatment and expensive surgery for which costs are unknown). Trauma-focused psychological treatment for PTSD (in accordance with NICE guidelines) – £1,040 to £1,560 for course of CBT Survivor of extremist violence on maximum disability allowance with a family member acting as carer – £9,877.40 per annum A victim who is on job seekers allowance may receive £3,976 per annum. (As a result the of 1996 Manchester bomb 250 workers were temporarily ‘laid off’ and it is estimated that a few hundred people permanently lost their jobs) The Criminal Injuries Compensation Authority (CICA) received 573 applications in respect of the London Bombings of 7 July 2005 (as of March 2007). The highest individual settlement sum was £152,050 Of the 90 interim payments granted, several exceeded £100,000. No figures were available as to the final amount paid to the victims but it could be anywhere in the region of £415,000 and above.