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PFI contracts targeted for savings

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Private finance initiative (PFI) deals which are costing hospitals and other services millions of pounds are to be targeted in a government savings drive, it is reported.

A team of senior government lawyers and auditors is expected to examine PFI contracts which are regarded as providing poor-value-for-money for taxpayers in a bid to cut spending.

According to the Daily Telegraph, the PFI deal signed for the Queen’s Hospital in Romford will be one of the first under scrutiny. Many of the services at the £261m hospital, which was built four years ago, are run by private contractors.

Treasury minister Lord Sassoon, left, said the move would signal the government’s “determination to drive out costs while ensuring front line services are maintained.”

He added: “It is critical that government urgently addresses every opportunity for savings across all contracts, no matter how complex they may be.

“We owe it to the taxpayer to eliminate wasteful practice and gold plating in contracts. PFI contracts are not immune from savings.”

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