Are these people just trying to waste money?
Absolutely - they have budgets to spend, and if is not spent they don't get the same next year!
The Government has always been a real cash cow for ad and marketing agencies as they tend to write blank cheques - but that's all set to change in the next budget as the Government has to make big cuts in spending.
London is a brand attracting overseas investment and tourism so it is good to have the right image - what I don't understand though is that they could get this work done for FREE, or at least for a fraction of the price.
Imagine the Kudos - agencies would be falling over themselves to come up with the best ideas.