Saturday 14 May 2022 10:19 PM Liz Truss faces Whitehall row over purchase of £20m New York 'partyhouse' for ... trends now

Foreign Secretary Liz Truss is at the centre of a Whitehall row over the purchase of a £20 million 'party house' in New York for British diplomats.

A leaked memo seen by The Mail on Sunday states that Ms Truss is 'very supportive' of plans to buy the freehold on a 19th Century townhouse from Guy Wildenstein, an art dealer who is facing trial for a £500 million tax fraud in France.

And a separate leaked document indicates that Ms Truss is pushing back against demands from No 10 for deep cuts in the Civil Service, with up to 91,000 positions under threat. 

The memo states that the Foreign Office does not believe it 'can deliver the headcount reductions of 900 presently proposed' and calls for a 'net increase of 1,000 after using a Voluntary Exit Scheme to replace people whose skills we no longer need'.

Officials have raised concerns that Ms Truss's department is 'insufficiently conscious' of the need to make economies, including on staff, at a time when the rising cost of living for families is becoming a significant political problem for the Government.

The memo on the proposed Manhattan purchase argues that 'the Sutton Square townhouse would provide a high-quality entertainment space close to the UK mission to the UN [and] comfortable accommodation for VIPs', but warns that 'there may be media interest in the purchase given the high value of the property and its intended use as a diplomatic residence'.

Despite the controversy surrounding Mr Wildenstein, the memo says the Foreign Office is 'confident that there is no legal risk of purchasing the property from this individual and believe that media interest will be manageable… we are aware that the Foreign Secretary is very supportive'.

It adds: 'The property is also in a highly desirable area of New York and will likely hold or increase in value over the long-term'.