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.

Highways jobs

Senior Traffic Engineer

East Riding of Yorkshire Council
£32,029 - £34,788 per annum
Currently seeking an enthusiastic and experienced individual to manage our Traffic Team. East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

ESCA Development Assistant

Essex County Council
£20000 - £22200 per annum + Excellent Benefits Package
ESCA Development Assistants will work at the heart of the team to deliver administrative tasks in support of all programmes and projects across Children & Families and Adults and financial monitoring. England, Essex, Chelmsford
Recuriter: Essex County Council

ASC Senior Social Worker - Physical & Sensory Impairment Team

Essex County Council
£38400 - £46475 per annum
Job Purpose ECC Adult Social Care, through effective practice, is moving towards a transformational shift from a focus on long-term care support, to a England, Essex, Harlow
Recuriter: Essex County Council

Head of Operational and Commercial Services

Copeland Borough Council
£66,273.48 per annum
Looking for a professional with ambition and inspirational leadership qualities, with operational service and... Cumbria
Recuriter: Copeland Borough Council

Customer Service Assistant

Brent Council
£22,779 - £24,030 p.a. Inc.
An exciting and challenging opportunity has arisen within the Customer Services section. Wembley, London (Greater)
Recuriter: Brent Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores how councils can tackle modern slavery and trafficking in their supply chains, finds out more about Cambridge's first cohousing scheme and the launch of a new project to build a shared service pattern library for local government.

This issue also contains a special focus on children's services and how councils are protecting children following local safeguarding children boards being abolished.

Register for your free magazine