Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

CHANCELLOR RE-ENDORSES PRIVATE FINANCE INITIATIVE

  • Comment
The Treasury in future will not approve capital projects unless private finance options have been explored, Chancel...
The Treasury in future will not approve capital projects unless private finance options have been explored, Chancellor Kenneth Clarke announced today in a pre-budget keynote speech to the CBI.

Mr Clarke said he was determined to push the private finance initiative right across the public sector. He said the aim was to 'maximise the scope for, and use of, private finance while concentrating inevitably finite capital provision on those areas where, for whatever reason, private finance is not possible'.

'All in government need to understand that private finance is increasingly going to become the main source of growth in investment projects in the public service.'

The government had broken new ground with the PFI since its launch last year, said Mr Clarke: 'Most notably with the construction of the Heathrow Express to Heathrow Airport.'

He said there were misconceptions surrounding the PFI. It was about delivering extra investment and projects on the ground. It was about outcomes not guidelines, deals not rules, he said.

Mr Clarke pledged to keep public sector pay 'under control' and to raise the efficiency of the public sector.

'I am all too well aware that past promises to keep inflation down and the public finances under control have gone awry. But I am not just expressing my good intentions,' he said.

He claimed the government had established an important principle for public sector pay - 'that increases should be affordable, should be financed by greater efficiency and should not be linked to the so-called going rate of inflation'.

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.