Birmingham City Council has received a document setting out ministers’ reasons for pulling funding from its £2.7bn highways Private Finance Initiative (PFI) contract but has refused to disclose it.
Last week the council's leader accused the Government of 'betrayal' by withdrawing its £50m a year contribution for the PFI contract, causing the deal to collapse.
Under the original arrangement, which would have run from 2024-2035, the council would also have put in £50m annually.
A Department for Transport (DfT) spokesperson told Highways: ‘We have confirmed an alternative approach to Birmingham’s Highway Maintenance funding to ensure better value for the taxpayer.’
The DfT told Highways that the detailed grounds on which the proposal was rejected have been communicated to the council.
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