Laura Sharman 20 June 2018

MPs blast ‘unacceptable’ cost of PFI deals

MPs blast ‘unacceptable’ cost of PFI deals image

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.

Overcoming the barriers to Commercial Card use image

Overcoming the barriers to Commercial Card use

Want to reap the benefits of Commercial Cards but coming up against some challenges? James Sykes, Head of Commercial Cards, Lloyds Bank and David Legg, Head of Corporate Card Products, Lloyds Bank, discuss how the payments industry is helping organisations unlock their true value.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager

Leicestershire County Council
Up to £50,823 per annum
The role of this post is to oversee the project management, development and implementation of the County Council’s Major Transport Projects.. Leicestershire
Recuriter: Leicestershire County Council

Programme and Change Delivery Manager (Spatial Planning and Urban Design)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,833 - £53,115 Depending on skills and experience
Are you a change delivery manager with expertise in England’s local government spatial planning and urban design sector? Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Early Years Practitioner

The Royal Borough of Kensington & Chelsea Council
£26,544 - £30,618 per annum pro rata
This is a diverse area and we have high aspirations for all our children, starting with... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Programme Manager - Association of Directors of Children’s Services

City of York Council
£50,000 to £60,000 pa
This role will help to shape an annual SLI work plan and variously oversee, facilitate, commission or directly deliver and... York, North Yorkshire
Recuriter: City of York Council

School Wellbeing Worker

City of York Council
£27,614 to £30,602 per annum
The role will involve providing schools with consultation and advice, training, direct work in... York, North Yorkshire
Recuriter: City of York Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue