03 March 2009

Burying bad news: £13bn to rescue PFI projects


As we await the farcical “media event” that will take place in the White House, the Government has chosen today to bury more bad news.

The Treasury has announced that up to £13bn will be used to salvage 110 PFI projects.  It seems that some clever mechanism will be used so the money does not appear as Government borrowing.

The PFI is now dead as the risk is now being underwritten by the taxpayer and little private money will be used.

Jeremy Barker, a director for global infrastructure at KPMG, said:

the idea "is potentially at odds with the philosophy underlying the PFI".


The PFI model has failed.  Why not just say so?  It is about time for some honestly.  After all this U-turn will hardly make the headlines.

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