27 Apr 2011

PFI: another U-turn by the coalition Government

News that George Osborne is to press ahead with 61 PFI (private finance initiatives) when in opposition he denounced them as poor value for money is to say the least shocking. The 61 projects worth a staggering £6.9 billion have been taken forward since the general election by the coalition Government.

Photo: This was sent to me a while ago but not sure who I can credit for it?

This blog has condemned PFI on many occasions. The Labour Party embraced PFI, funding public services and infrastructure through private finance, and now the Coalition Government are continuing the practice, which effectively pushes the costs of these services and infrastructure into the future, so keeping them off the balance sheets. This builds up debt for future generations.

Darren Johnson, Trade and Industry spokesperson for the Green Party is quoted saying: “In opposition both Osborne and Vince Cable said that PFI was poor value for the taxpayer. The Chancellor described it as ‘a discredited model’ whilst the Business Secretary called it “a dishonest system of accounting, designed to hide taxpayers’ liabilities.” Now they are in Government, they intend to press ahead.”

The Green Party has likened PFI to a giant scheme of outdoor relief for private contractors, equivalent to buying your house on a credit card. Darren Johnson concluded, “We would end it.”

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