Laura Sharman 02 July 2018

Councils withheld just £32m last year on underperforming PFI deals

Councils withheld £32m last year from underperforming PFI providers, according to new research published today.

Law firm Collyer Bristow found only 0.3% of annual payments to all PFI providers were held back, suggesting local authorities are paying for poor or undelivered services.

The research shows that Birmingham City Council accounted for nearly half this figure after it held back £14m following a long running dispute with Amey.

Catrin Rees, senior associate in Collyer Bristow’s Construction team, said: ‘Councils - and ultimately taxpayers - should not be paying for services if they are not being delivered by PFI contractors.

‘However, if local authorities feel that their providers may not be holding up their end of the agreement, then it’s obviously sensible to consider revisiting the original agreements and taking advice on whether there are grounds to reduce or withhold payments to get a better service for taxpayers.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Technology and Customer Experience

Oxfordshire County Council
£125,350 - £135,928
Lead transformation through local government reorganisation. This is a pivotal opportunity for an exceptional, director level leader who thrives on turning complex change into better outcomes for people. If you’re ambitious to get Oxfordshire County Oxford
Recuriter: Oxfordshire County Council

Caseworker - Essex Legal Services

Essex County Council
£25081.00 - £27653.00 per annum + + 26 Days Leave & Local Gov Pension
Caseworker - Essex Legal ServicesPermanent, Full Time£25,081 to £27,653 per annumLocation
Recuriter: Essex County Council

Catering Assistant

North Yorkshire Council
£12.65 per hour
Full uniform will be provided including safety footwear. Bedale, North Yorkshire
Recuriter: North Yorkshire Council

LGV Driver

North Yorkshire Council
£34,094 - £37,225 per annum
Would you like a rewarding role that allows you to work outside in some of the most scenic places in the country? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Facilities Assistant

Essex County Council
Up to £25081.00 per annum
Facilities AssistantFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council
Linkedin Banner