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

Team Leader (Section 278 / 38 Road Safety)

Cardiff Council
Grade 10 - £48,226 - £51,356
Cardiff is one of the UK’s fastest‑growing and most vibrant cities. Cardiff (Caerdydd)
Recuriter: Cardiff Council

Licensing Compliance Coordinator (Temp)

City Of Doncaster Council
£28,598 to £31,537
Do you want to work in job which makes a difference to the local community and the people who live there? Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

External Funding Development Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£46,206 - £62,451
External Funding Development Manager
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Casual Customer Operations Assistant

Wyre Borough Council
£12.85 per hour
Marine Hall is a vibrant and dynamic venue dedicated to delivering exceptional experiences for our audiences and customers. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council

Housekeeping and Hospitality Assistant

Wyre Borough Council
£12.85 Per Hour
We are seeking a Housekeeping & Hospitality Assistant to join our team at Marine Hall, Fleetwood, within the Directorate of Transformation & Change. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council
Linkedin Banner