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

Caretaker

Durham County Council
£24,796 (Pro Rata)
Permanent Contract – Part Time - 32 Hours per week (6am – 9.15am 3pm – 5.45pm) Mon-Fri. Whole Time. Required to start 20th October 2026.   The Governo Consett
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 9 – Pre-Progression (£35,412-£39,152 per annum) / Grade 11 – Post Progression (£40,777-£45,091 per annum). Pay award pending.
We are seeking to recruit two temporary (six month) full-time (37 hours per week) Social Workers, to join our Adult Social Work Team at Derwentside Lo Durham
Recuriter: Durham County Council

Head of Finance - Children & Young People’s Service

Rotherham Metropolitan Borough Council
£75,585 - £80,726 (pay award pending)
This is a great place to work for people who want to make a real difference. Riverside House, Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

Head of Finance and Accountancy (Deputy S151 Officer)

Chesterfield Borough Council
£72,000 (inclusive of Market Supplement)
In this role, you will provide visible leadership and management across the Finance Service Chesterfield, Derbyshire
Recuriter: Chesterfield Borough Council

Director of Digital, HR & Customer Services

Chesterfield Borough Council
£97,017
Reporting directly to the Deputy Chief Executive, you will lead a diverse directorate, with responsibility for Human Resources Chesterfield, Derbyshire
Recuriter: Chesterfield Borough Council
Linkedin Banner