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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Chief Executive & Head of Paid Service

Hull and East Yorkshire Combined Authority
£150,000 - £170,000
Chief Executive & Head of Paid Service Hull
Recuriter: Hull and East Yorkshire Combined Authority

Chief Legal Officer

Sandwell Metropolitan Borough Council
£101,275 - £117,266
We are now seeking an exceptional legal leader to join us as Chief Legal Officer. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Major Events Manager

Powys County Council
£49817 - £51928
This is an exciting opportunity to lead Powys County Council's preparations for three major events in 2027 Llandrindod Wells, Powys
Recuriter: Powys County Council

Debtors and Collection Officers

Durham County Council
£27,274 to £29,542 p.a. (Grade 5)
This is an exciting opportunity to join a dynamic and ever-changing revenues environment. You’ll have the chance to develop your skills, gain valuable Spennymoor
Recuriter: Durham County Council
Linkedin Banner