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

Transport Professional Engineer and Senior Engineer

Leicester City Council
£42,839 - £54,495 per year
Would you like to be a part of transforming the transport system in Leicester? Leicester, Leicestershire
Recuriter: Leicester City Council

Adults Social Worker - West Essex

Essex County Council
£37185 - £50018 per annum
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in West E England, Essex, Harlow
Recuriter: Essex County Council

Adults Social Worker - North Essex

Essex County Council
£37185 - £50081 per annum
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in North England, Essex, Colchester
Recuriter: Essex County Council

Part Time Business Operations Assistant - ACL

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Business Operations Assistant - ACLPermanent, Part Time£25,081 per annum, full time equivalentLocation
Recuriter: Essex County Council

Customer Advisor

West Northamptonshire Council
£26,914-£27,781 (FTE)
We aim to empower our customers by supporting them to become digitally fluent, and together with our core offer of reading materials and learning, we offer traditional services alongside a fast-paced and busy work environment to challenge and develop the Towcester
Recuriter: West Northamptonshire Council
Linkedin Banner