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

Cook

North Yorkshire Council
£13.47 - £14.13 per hour
We have an opportunity to join our award-winning Facilities Management catering team Malton, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner and Caretaker

North Yorkshire Council
£12.65 - £13.47 per hour
Are you looking for a cleaning role that is a little different? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Project Officer Economic Development, Skills & Employment

North Northamptonshire Council
£38 220 - £40 777
The focus of this role within the Economic Growth & Sustainability team is economic development Kettering, Northamptonshire
Recuriter: North Northamptonshire Council

Project Support Officer Economic Growth & Sustainability

North Northamptonshire Council
£31 537 - £32 597
You’ll find that we have a wide range of careers that may be more surprising than you think! Kettering, Northamptonshire
Recuriter: North Northamptonshire Council

Service Director - Highways

Central Bedfordshire
£95,953 – £106,769
As part of the council’s leadership team, you will lead specialist technical services Bedfordshire
Recuriter: Central Bedfordshire
Linkedin Banner