The Chancellor announced today that the government will stop using the current model of private finance initiative (PFI) to fund the future building of infrastructure in response to concerns.
An announcement published alongside the Budget said that while existing Private Finance 2 and PFI contracts will not end, it will support private investment in infrastructure through other means such as contracts for difference, regulated asset base model and the UK guarantee scheme. It comes after the use of PFI and PF2 contracts to fund construction of hospitals and schools, for example, has declined significantly and come under criticism. In 2012, the government replaced the PFI model with PF2, but it has been only used six times since, with 86% of PFI and PF2 contracts signed prio...
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