Chancellor ~Gordon Brown~ has revealed the amount of cash spent under the private-finance initiative in 2006 almost doubled this year, as he announced a big expansion of the programme.
The estimated aggregated capital value of transport projects being undertaken by local authorities through PFI at preferred bidder stage in 2005 totalled £52M – this year they have, so far, almost doubled at £95M, according to Brown’s Budget report.
The figures were announced as part of the budget as the chancellor’s public investment promise of £26bn in total PFI credits over the next four years, followed by an estimated £29.9bn in the following four years, rising to £31.8bn from 2013/14 to 2016/17.
Brown said: ‘The private sector can be harnessed to deliver investment in better-quality public services while frontline services are retained within the public sector.’ But he promised in the report to only use PFI ‘where it is appropriate’. Unions have complained that the contracts will erode workers’ rights. Amended 30 Mar 2006
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