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

LGA HAILS RISE OF PFI WITH A TWIST

  • Comment
As£1.5billion of new PFI hospitals are announced by ministers, local authorities have been turning Private Finance...
As£1.5billion of new PFI hospitals are announced by ministers, local authorities have been turning Private Finance Initiatives on their heads by offering Public Finance Initiatives to other public bodies.

Recent months have seen a spate of local authorities become PFI investors - financing and building state of the art health facilities for other public bodies to pay back over the long term. Councils up and down the country are now investigating how they could replicate these new PFI projects across England.

Projects nearing completion include:

-- This month Huntingdonshire DC will officially open a£6.5m new state of the art health centre which the PCT will rent back from the council

-- Wychavon DC is building a£6.7m hospital and health centre - the 26 bed hospital and GP surgery with 13 doctors will be completed in late September

The chairman of the Local Government Association, Lord Bruce-Lockhart, said: 'Local authorities are leading the way in looking at entirely new ways to fund and build projects that are beneficial to the local community even if they don't come strictly under the remit of the council.

'These Public Finance Initiatives are all about helping to ensure that local people get the right services, whichever part of the public sector they come from, in the right time at the right place.

'There are three key principles when councils are deciding how to use taxpayers' money. Firstly it has to be a regeneration project from the town, secondly it has to have community benefit and finally it has to be reinvested locally.

'Not only does the community benefit from new facilities, but it makes financial sense for the councils as it provides them with an income stream helping to keep council tax as low as possible.

'Taxpayers money is being spent in a highly unusual, but ultimately bold way, to improve local services and to deliver key improvements in the infrastructure of local areas.'

  • 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.