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

Support Assistant

Durham County Council
£24,027 pro rata
Support Assistant Grade 1 £24,027 pro rata Temporary – required from 1st October 2025 until 31st October 2026  20 hours per week Mon – Fri, 10am -2pm, Consett
Recuriter: Durham County Council

Caretaker

Durham County Council
£24.027 – £24,404 pro rata
Caretaker Grade 2  £24.027 – £24,404 pro rata Full Time, Whole Time Permanent Required as soon as possible The Governors of our fully inclusive, succ Consett
Recuriter: Durham County Council

Breakfast Club Supervisory Assistant

Durham County Council
£24,027 pro rata
Breakfast Club Supervisory Assistant Grade 1 £24,027 pro rata 8hrs 45mins per week, term time only Permanent Required from 15th September 2025 Our Go Durham
Recuriter: Durham County Council

Lunchtime Supervisory Assistant

Durham County Council
£24,027 pro rata
Lunchtime Supervisory Assistant Grade 1      £24,027 pro rata Permanent 7hrs 30mins per week, term time only Required from 2nd September 2025 Our Gov Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
£34,314 - £37,938 / £39,513- £43,693 p.a. i.e. grade 9 pre progression/grade 11 post progression PAY AWARD PENDING
We are looking for two fulltime permanent Social Workers to join our Integrated Learning Disabilities South Team. WHAT IS INVOLVED? You will work Durham
Recuriter: Durham County Council
Linkedin Banner