The article blames Labour but it was Sir John Major who introduced it in 1992 and later Labour, Coalition and Tory governments continued with them. Many dirty hands made nowt work!
“Sources claim that in the wake of the collapse of outsourcing giant Carillion earlier this year, the Treasury wants to see whether PFI schemes represent “real value for money”.
Under PFI, the state hires contractors such as Carillion to build and deliver projects – then lease it back for a set annual fee.
But under Labour [and later Coalition and Tory governments], more than 500 schemes ended up costing taxpayers five times the original building cost. In 2011 one hospital was being charged £333 by the PFI provider to change a lightbulb.
Industry insiders claim that while the Chancellor’s review won’t “re-write” previous PFI deals, it could kill off PFI “for good”. …”