• Home
  • Our Team
  • Useful links
  • Blog
  • Contact
P2G LLP

Public Accounts Committee - scope to make savings on PFI

3/2/2015

1 Comment

 
The Public Accounts Committee today published its report on the financial sustainability of the NHS. The report's recommendations included the following regarding PFI:
There is scope to make savings in the amount paid under private finance initiative schemes, which cost the NHS some £1.8 billion a year, as there are some examples where refinancing or buying out existing schemes could provide better value for money in the long run. There are also opportunities to release funds tied up in surplus capital assets that could be used for upfront investment in new models of care. For example, there are some £1.5 billion worth of unused land and premises in London alone.
Further, the Department of Health should:
support evaluation of alternative financing or operating options for costly private finance initiative schemes where there is a clear opportunity for improving value for money
With 26% of all NHS Trusts in deficit, including 80% of Foundation Trusts, this is clearly a pressing matter. Financial pressure is set to increase. As the report concludes:
It is clear that the old ways will no longer work – radical change is required to make the NHS financially sustainable.
The report notes that four of the six trusts with deficits greater than £25million had a PFI scheme, whilst Northumbria, who bought out their PFI scheme with assistance from a Local Authority loan, expect a £21.5m surplus this year.

The DoH reported that whilst buying out PFI contracts was not always appropriate, they were exploring other options such as renegotiating soft services, which make up a large proportion of PFI schemes.
1 Comment

    Authors

    The authors have experience of more than 100 PFI projects in multiple sectors.

    Archives

    March 2022
    January 2022
    September 2021
    March 2021
    April 2020
    March 2020
    October 2019
    September 2019
    June 2019
    March 2019
    May 2018
    June 2017
    October 2015
    July 2015
    June 2015
    April 2015
    March 2015
    February 2015
    January 2015
    October 2014
    August 2014
    July 2014
    June 2014
    May 2014
    October 2013
    July 2013
    June 2013
    May 2013

    Categories

    All
    Charitable Donation
    Code Of Conduct
    Contracts
    Covid 19
    Covid-19
    Damage
    Honesty
    Insurance
    Monthly Reports
    News
    PF2
    Pfi
    PFI Handback
    PPM
    Profit
    Public Sector
    Relationships
    Savings
    Secondary Market
    Special Purpose Companies
    Vacancy

    RSS Feed

P2G LLP
A Social Enterprise Partnership
Registered in England & Wales
No. OC375527
​P2G Contract Support LLP
Registered in England & Wales
No. OC419519