Following the collapse of Carillion and the termination of Sandwell and West Birmingham NHS Trust's PF2 scheme (where Carillion left a half built hospital), the autumn statement saw the Chancellor announcing that there will be no new Private Finance Initiatives or Private Finance 2 schemes. He also announced the intention to set up a centre for excellence to manage existing private finance schemes, which are not considered to be good value for money for the taxpayer. The Spring statement brings a consultation on possible new models for private financing of infrastructure projects, particularly with the likely loss of EU sources of funding post Brexit. We will report back once more is known.
Treasury launches hunt for private infrastructure investment models – but rules out PFI replacement