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

Deputy Director of Adult Social Services

Rochdale BC
up to £108,870
Rochdale is a diverse metropolitan borough within Greater Manchester, home to around 242,000 residents. Rochdale, Greater Manchester
Recuriter: Rochdale BC

Head of Regeneration and Strategic Project Delivery

Vale of Glamorgan Council
£82,242.00 - £91,146.00 per Year
Help shape the future of the Vale of Glamorgan. The Vale of Glamorgan (Bro Morgannwg)
Recuriter: Vale of Glamorgan Council

Director of Care & Health Integration (DASS) and NHS Place Partnership Director

Rochdale BC
up to £149,041
Rochdale is a diverse metropolitan borough within Greater Manchester, home to around 242,000 residents. Rochdale, Greater Manchester
Recuriter: Rochdale BC

Graduate Programme – Project Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£31,586 (2026/7 pay award pending)
Job Title – Graduate Project Officer Salary Range - £31,586 (2026/7 pay award pending) 2 Year Fixed Term Contract Full Time- 36 Hours Location
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Shovel Driver/Plant Operative - Chelmsford

Essex County Council
Up to £28033.00 per annum
Shovel Driver/Plant Operative - ChelmsfordPermanent, Full Time£28,033 per annum Location
Recuriter: Essex County Council
Linkedin Banner