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

Hammersmith & Fulham London Borough Council
Competitive Salary
If you share that attitude and have the skills and experience to deliver, you could be our next Chief Executive. London (Greater)
Recuriter: Hammersmith & Fulham London Borough Council

Coroner's Officer

Essex County Council
£30404.0000 - £35769.0000 per annum
Coroner's OfficerFixed Term, Full Time£30,404 up to £35,769Location
Recuriter: Essex County Council

Coroner's Officer

Essex County Council
£30404.0000 - £35769.0000 per annum
Coroner's OfficerFixed Term, Full Time£30,404 up to £35,769 per annumLocation
Recuriter: Essex County Council

Armed Forces Commissioner

Ministry of Defence
£170,000 per annum
This is a unique opportunity to serve as the independent champion for Service personnel London (Greater)
Recuriter: Ministry of Defence
Linkedin Banner