Report hails success of PFI schemes

Link: Boateng defends use of PFI contracts

The document, PFI: Meeting the Investment Challenge disclosed that this year around £4.6bn would be invested in PFI schemes, with almost 60% classified to the public sector.

In total, 563 PFI deals have been closed by the government since the inception of the schemes in 1997, at a total cost of £35bn.

Paul Boateng, chief secretary to the Treasury, said new applications for PFI would be explored ‘where existing evidence suggests it could deliver benefits – in social housing, urban regeneration and waste’.

The report also details a number of reforms proposals including changes to the public sector comparator, the tool which measures whether using the private will deliver greater benefits than using public funds.

Other proposals include improving the efficiency of the procurement process, increasing the scope of PFI and focusing on where it works best, and investigating the potential for new methods of financing projects.

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