MANY of the government’s economic and social schemes have been falling by the wayside while Tory ministers are sidetracked by the battle that will determine who would be their next leader.

Progress has halted on some of the party’s already disappointing projects, such as rebuilding of schools and the administration of Personal Independence Payments (PIP) which are given to help costs caused by long-term illnesses or disabilities.

Nearly a third (32 per cent) of the plans in the Government’s Major Projects Portfolio (GMPP) are falling into the “red” or “amber/red” — compared with 18 per cent three years ago — according to a new report released yesterday by Labour.

Red means the successful completion “appears to be unachievable” and amber/red means that the plan “is in doubt, with major risks or issues apparent in a number of key areas.”

Labour has accused the party of “turning inwards” and being too distracted by their leadership contest after PM David Cameron resigned to address huge challenges that face people in need.

Shadow minister without portfolio Jonathan Ashworth MP said: “The Tories seem more interested in fighting amongst themselves at the moment than actually running the country.

“Key government projects are at risk but we simply don’t have the leadership we need to ensure they are delivered. As usual it is ordinary working people who will pay the price of their failure.”

The ‘Priority School Building Programme’ — which aims to rebuild or refurbish schools that are falling apart as a result of underfunding — is listed as amber/red.

The government claimed this is because “recovery of the construction market” is holding it back.

The Tories have also blamed building contractors for their “lack of interest” and have yet to agree to secure extra funding to cover increasing costs of labour and building materials.

PIP benefits have replaced the Disability Living Allowance but the report states that the volume of new claims is higher than expected, which has resulted in a rise in costs for the entire scheme.

The High Speed 2 (HS2) rail project linking London to cities in the north is in the amber/red territory simply because of its “complexity” the government has claimed.

A productivity scheme for sourcing NHS supplies is also in the red, meaning that its chance of success is slim.

The NHS Procurement Efficiency Programme has been launched to try to reduce costs partly by ensuring that NHS trusts are not procuring the same products for different prices.