Sunday, 4 February 2018

PFI projects for schools under criticism again

"Financing projects such as schools and hospitals privately costs taxpayers billions of pounds more than public sector alternatives, parliament's spending watchdog says."

"A report suggests a group of schools cost 40% more to build and a hospital 70% more to construct than if they were financed by government borrowing."

"The National Audit Office report identifies costs and benefits of PFI."

"The Treasury said it only approved PFI contracts that were value for money."

"The collapse of Carillion, which was working on numerous PFI projects, has renewed criticism of such schemes."

"The NAO report, which was written before the collapse of Carillion, found 716 public projects were active under PFI and its successor PF2, with annual costs amounting to £10.3bn in 2016/17."

"PFI projects will cost the taxpayer a further £199bn by the 2040s, it said."

"The watchdog said the cost of raising capital was higher for PFI projects compared with government-raised funds, and found there were other additional costs."

"However, the government said PFI projects improved public services, offered better value for money and shifted risk away from the public sector..."

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