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SNP says PFI bill 'up by £27bn' | SNP says PFI bill 'up by £27bn' |
(about 2 hours later) | |
The Scottish National Party (SNP) has accused the UK Government of hiding the cost of Public Financial Initiative (PFI) contracts. | |
It claims these schemes will now cost £27bn more during the period to 2032 than stated in the March 2008 Budget. | It claims these schemes will now cost £27bn more during the period to 2032 than stated in the March 2008 Budget. |
A Treasury spokesman said that the figures were a "gross inflation" of the actual cost to government as they had not been adjusted for inflation. | A Treasury spokesman said that the figures were a "gross inflation" of the actual cost to government as they had not been adjusted for inflation. |
PFI deals use private sector money to fund public sector projects. | PFI deals use private sector money to fund public sector projects. |
Such contracts are often entered into to fund, build and operate assets such as hospitals or schools. | Such contracts are often entered into to fund, build and operate assets such as hospitals or schools. |
'Out of control' | 'Out of control' |
SNP Treasury spokesman Stewart Hosie said that in the chancellor's March 2008 Budget, the expected bill for PFI contracts until 2032 was £188.6bn. | SNP Treasury spokesman Stewart Hosie said that in the chancellor's March 2008 Budget, the expected bill for PFI contracts until 2032 was £188.6bn. |
But new figures published in the pre-Budget report last week showed that this had gone up to £216.1bn. | But new figures published in the pre-Budget report last week showed that this had gone up to £216.1bn. |
"We have always known that PFI was hyper-sensitive, but it is clear that the liability is rocketing out of control," Mr Hosie said. | "We have always known that PFI was hyper-sensitive, but it is clear that the liability is rocketing out of control," Mr Hosie said. |
Describing the initiative as a "millstone around the UK's neck", he said that this would compound already stretched national debt if the government had to put the costs onto its own books. | Describing the initiative as a "millstone around the UK's neck", he said that this would compound already stretched national debt if the government had to put the costs onto its own books. |
But a Treasury spokesman said: "These figures grossly inflate the actual cost of PFI projects to the government, as they have not been adjusted to reflect inflation. | But a Treasury spokesman said: "These figures grossly inflate the actual cost of PFI projects to the government, as they have not been adjusted to reflect inflation. |
"PFI has delivered good value for money, improved services and it will continue to play a small but important part in overall procurement of public services." | "PFI has delivered good value for money, improved services and it will continue to play a small but important part in overall procurement of public services." |
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