Laura Sharman 20 June 2018

MPs blast ‘unacceptable’ cost of PFI deals

A damning report has warned the Government is unable to prove that Private Finance Initiative (PFI) contracts offer value for money for the taxpayer.

The Public Accounts Committee (PAC) has found the Treasury has no plans to assess the value for money of PFI and there is little evidence of sharing best practice. 

The report highlights examples of the unflexibility of PFI including the fact Liverpool City Council is paying £4m a year for a school that has been empty since 2014.

‘Much has changed in the past quarter-century but Government’s inability to answer basic questions about PFI remains undimmed,’ said Committee chair, Meg Hillier.

‘It beggars belief that such apparently institutionalised fuzzy thinking over such large sums of public money should have prevailed for so long.

‘The Treasury simply cannot support its assertion that PFI represents good value for money. Yet while Government is now seeking to collate the PFI data that does exist, it does not intend to publish the results of this work. This is unacceptable. Government must level with taxpayers about the value of PFI.’

The report added the government’s reform of PFI has been fairly limited, with only a handful of PF2 projects in the pipeline.

PAC added it had realised concerns as far back as 2011 and it is ‘disappointed; that so little progress has been made.

SIGN UP
For your free daily news bulletin
Highways jobs

Interim Head of Waste Management

Essex County Council
Up to £650.0000 per day + Umbrella
Interim Head of Waste ManagementTemporary, Full TimePay Rate
Recuriter: Essex County Council

Principal Planning Policy Officer

The Royal Borough of Windsor & Maidenhead
£44,355 - £53,120 per annum
We have an exciting opportunity for a Principal Planning Policy Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Occupational Therapist

The Royal Borough of Windsor & Maidenhead
£35,676 - £42,811 per annum
We have an exciting opportunity for an Occupational Therapist to join us! Maidenhead, Berkshire / Multiple
Recuriter: The Royal Borough of Windsor & Maidenhead

Personal Advisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£37,766- £47,830 per annum
Personal Advisor£37,766- £47,830 ... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Social Worker (Hospital Team)

The Royal Borough of Windsor & Maidenhead
£45,831 - £50,414 per annum, plus an annual retention bonus of £3,000 subject to eligibility.
We have exciting opportunities for Senior Social Workers to join the Hospital Discharge Team! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead
Linkedin Banner