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

Relief Mobile Cook

North Yorkshire Council
£13.47 to £14.13 per hour
We have an opportunity to join our award-winning NYES Management Catering Team Skipton, North Yorkshire
Recuriter: North Yorkshire Council

Family and Youth Hub Business Support

Wakefield Council
£25,989.00 - £26,403.00, Grade 4
We are looking for an enthusiastic individual to work in our Wakefield Families Together Platform 1 Youth Hub. Pontefract, West Yorkshire
Recuriter: Wakefield Council

Residential Worker

Wakefield Council
£16,030.00 - £17,217.00, Grade 7
You don’t need a degree or formal qualifications to start. We welcome people from all walks of life who are Wakefield, West Yorkshire
Recuriter: Wakefield Council

Residential Worker

Wakefield Council
£32,061.00 - £34,434.00, Grade 7
Working in one of Wakefield Council’s children’s homes is a chance to change lives and transform your own future. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Reablement Coordinator

Wakefield Council
£42,839.00 - £46,142.00, Grade 10
We are currently recruiting a Reablement Coordinator in our peripatetic service. Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner