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

Social Worker

North Yorkshire Council
£38,220 - £42,839
Across local government, children’s services are facing unprecedented demand and funding constraint. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Social Worker

North Yorkshire Council
£38,220 - £42,839
Across local government, children’s services are facing unprecedented demand and funding constraint. Richmond, North Yorkshire
Recuriter: North Yorkshire Council

Audit and Governance Committee Independent Members

The Royal Borough of Windsor & Maidenhead
£650 per meeting, four meetings per year
The Audit and Governance Committee is a key component of the Council’s governance framework. Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Print Room Officer

The Royal Borough of Windsor & Maidenhead
£25,706 - £27,306 per annum
We have an exciting opportunity for Print Room Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Principal Policy Planner (Fixed Term)

The Royal Borough of Windsor & Maidenhead
£46,355 - £55,120 per annum
We have an exciting opportunity for a Principal Policy Planner to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead
Linkedin Banner